Global dairy prices set to rise in months ahead
This week’s average selling price was $3,368 (€2,804) per tonne. The index had risen 0.3% at the previous fortnightly global sale.
Traders are now describing this as a strong three-month rally, with analysts predicting the price will continue to rise in the months ahead as bad weather in New Zealand, the world’s largest dairy exporter, is set to hamper supply.
“Stepping back from the auction result, we see potential for overall prices, particularly for WMP (whole milk powder), to break this holding pattern and push higher in coming months,” ASB economists said.
Whole milk powder rose by 0.6% — slightly ahead of expectations from futures markets, analysts told Reuters news agency. Butter performed especially well on strong global demand, rising 1.2% to hit a new record of $6,026 (€5,015).
A total of 34,117 tonnes was sold at the latest auction, up 1.8% from the previous one, the GDT auction platform said on its website.
