Fourth successive rise at the Global Dairy Trade auction
This week’s Global Dairy Trade auction concluded with the prices up 3.5% the fourth successive positive auction.
Key products whole Milk Powder and Skimmed Milk Powder both recorded increases of 4.9% and 1.4% respectively.
It comes as milk production in New Zealand, which was already running significantly behind that of 2015, took a further hit in October.
Figures from Fonterra show its milk collection across New Zealand for the five months to October 31 reached 501m kgMS, 5pc lower than the same period last season.
- AMF index up 2.9%, average price US$5,500/MT
- Butter index up 1.7%, average price US$4,262/MT
- BMP index down 2.6%, average price US$2,408/MT
- Ched index up 2.2%, average price US$3,752/MT
- LAC index up 10.6%, average price US$873/MT
- RenCas index up 2.3%, average price US$6,201/MT
- SMP index up 1.4%, average price US$2,570/MT
- WMP index up 4.9%, average price US$3,593/MT
The world’s largest milk processor says its New Zealand milk collection continues to be impacted by unfavourable weather conditions across the North and South Islands and in October reached 204 million kgMS, 8pc behind the same month last season.
Daily collections peaked on October 19 at 80m litres, down on the previous two seasons.
Fonterra says production levels are not expected to recover and lower volumes will flow into the balance of the season.