The average price rose 1.5% overnight on Tuesday to $US4127 ($NZ5035) a tonne.
It followed a 2.7% fall at the previous auction a fortnight ago and a 3.4% drop at the start of April.
NZX dairy analyst Rosalind Crickett said the volume sold dropped about 9% as the current dairy season winds down, which coupled with strong buying activity from Southeast Asia and Oceania - accounting for 41% of the total volume sold - drove the price increase.
The region was the main buyer for most products - counterbalancing a pullback from both North Asia and the Middle East, where the war continues to also influence activity, she said.
"Despite global milk supply remaining strong, ongoing geopolitical tensions in the Middle East seemingly have no end in sight as the cost of fuel, fertiliser and feed inputs add to logistical challenges while also driving up the cost of food production.
"With previous hand-to-mouth buying patterns being exhibited in recent events, the current market activity suggests buyers are looking to lock in future orders before costs get unmanageable."
Whole-milk powder prices were up 2.2% to $US3741 ($NZ6352) a tonne, while skim milk powder also rose 3%, and butter milk powder was up 9%.
There was a 2.6% price drop for butter.
"Ample cream availability - especially with the northern hemisphere production season getting into full swing - continues to weigh on butter pricing," Crickett said.
This story was first published on rnz.co.nz |  |
