Dairy prices rise 6% in GDT auction to highest since April
BUSINESSDESK: Dairy prices rose to the highest level since early April in the latest GlobalDairyTrade sale, the third straight gain, with increases for all eight products on offer.
The GDT-TWI Price Index rose 6% compared to the last sale two weeks ago.
The average winning price hit $US3174 a metric tonne from $US3054 at the last auction. Whole milk powder, the biggest product by volume, rose 4.3% to $US2978 a tonne and skim milk powder jumped 7.5% to $US3211.
The auction results come after the ANZ Commodity Price Index gained in August after seven straight monthly declines, led by skim milk powder, though the strength of the New Zealand dollar meant prices fell 0.8% in kiwi terms.
The Reuters/Jefferies CRB Commodity Index of 19 commonly traded commodities is at its highest level since May amid optimism central banks in the US and Europe will act to stimulate growth.
In the latest GDT auction, anhydrous milk fat climbed 11.8% to $US3530 a tonne and cheddar rose 5.3% to $US3593 a tonne. Butter milk powder rose 15.8% to $US3091 a tonne and lactose gained 5.2% to $US2059.
Milk protein concentrate rose 15.5% to $US6173 a tonne and rennet casein rose 10.1% to $US7825.
There were 143 winning bidders over 16 rounds. There were 203 participating bidders out of a total number of qualified bidders of 717.