Rise in dairy prices at GDT auctions

Following the trading results, the average price reached US$4,021 ($7,075) per tonne. The increase followed the previous auction, which recorded a 1.2% rise. New Zealand dairy market analyst Rosalind Crickett described these results as quite expected.

The trend coincided with the release of data from New Zealand showing record milk collection figures for September and a 1.9% increase in milk solids volume. At the same time, the growth rate is slowing down: local reports indicate a drier-than-usual spring in the North Island regions, and risks of El Niño early and mid-summer are also being factored in.

Skimmed milk powder rose in price by 3.4% (to US$3,975 or $6,995 per tonne), recording its highest level on the platform in the last four years. According to Crickett, an additional factor could be last-minute pre-holiday purchasing due to concerns about product availability amid drought and geopolitical tensions.

The price gap between powders and fats remains. Butter decreased by 0.4% to US$4,721 ($8,309). Cheddar prices fell by 7.4% amid rising cheese production driven by increased global demand for protein for whey products, as well as an increase in stocks and export volumes.

High purchasing activity from North Asian buyers, who acquired just over half of the total product volume, provided support to the price growth. The prices of other items changed in mixed directions: buttermilk powder increased by 8.4% (to US$4,694 per tonne), mozzarella by 1.3% (to US$3,880), lactose by 0.6% (to US$1,665), while anhydrous milk fat dropped in price by 3.4% (to US$5,488).

During 17 rounds of trading, 105 winners out of 145 participants purchased 42,088 metric tonnes of products (at the previous session, 124 winners out of 165 participants bought 41,692 metric tonnes).