Dairy product prices inch higher

Dairy product prices edged higher at the Global Dairy Trade auction, rising for the second time in six auctions, as gains in milk fats offset a decline in milk powders.

The GDT price index rose 0.3% ovenight, from the previous auction three weeks ago to US$3323. Some 33,501 tonnes of product was sold, up from 32,260 tonnes at the previous auction.

Whole milk powder declined 1.6% to US$3,100 a tonne.

Whole milk powder "offer volumes are set to increase over the next few events, so buyers are unlikely to feel an urgent need to buy product now," AgriHQ dairy analyst Susan Kilsby said in a note.

Lactose rose 5.1% to US$791 a tonne, while butter climbed 3.8 %to US$5954 a tonne, and anhydrous milk fat gained 3.6% to US$6402 a tonne.

Cheddar increased 2.5% to US$4118 a tonne and rennet casein added 1.2% to US$6316 a tonne.

Bucking the trend, butter milk powder dropped 10.1% to US$2026 a tonne, while skim milk powder fell 1.2% to US$1944 a tonne.

"The dairy commodity market remains focused on the volume of skim milk powder that is in public storage in Europe," Ms Kilsby noted.

"Product has started to flow back into the intervention scheme before it closes at the end of the month."

There were 140 winning bidders out of 173 participating at the 15-round auction. The number of qualified bidders rose to 537, up from 522 at the previous auction.

- BusinessDesk

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