First Global Dairy Trade of the year sees another boost
The first Global Dairy Trade of the year has seen prices - the third lift in succession.
The latest event saw the price index rise by 2.8pc as skimmed milk powder and butter milk powder prices driving the lift, while the volume of product trade fell by 20pc.
SMP prices were up 7.9pc, while butter milk powder was up 9.3pc, while butter and cheddar prices were up 3.9pc and 3.2pc respectively. Just over 28,600t of product were sold at the auction this week.
The rise also came on the back of strong November production in New Zealand.
The previous two auctions in December also saw prices rise after months of negative demand with prices on a continual slide since mid-summer 2018.
Last month, Fonterra revised downwards its forecast milk price with Fonterra Chairman John Monaghan saying the revision in the forecast Farmgate Milk Price range is due to the global milk supply remaining stronger relative to demand, which has driven a downward trend on the GlobalDairyTrade (GDT) index since May.