Dairy commodity prices push higher overnight

Dairy commodity prices lifted 2.7% at the Global Dairy Trade (GDT) auction overnight. Prices lifted for all commodities offered. The whole milk powder (WMP) price index was up 0.9% at the April 17 GDT event. Regular grade WMP to ship in June lifted 0.5%, a little less than indicated by the NZX Dairy Derivatives market ahead of the event. The April WMP futures contract settled at US$3260/t yesterday, indicating a 0.9% lift in this grade and contract of product. Fonterra did lift its WMP offer volumes ahead of this event; however solid demand seems to be absorbing anything NZ has to offer at the moment. There was 31% more WMP sold at the April 17 event than at the April 3 event, with buyers taking nearly everything that was available. Anhydrous milkfat (AMF) made a recovery at this event, having dropped 7% at the April 3 event. The AMF price index lifted 5.3%. Regular grade AMF to ship in June lifted 5.2%. The Derivatives market had expected a 7.4% lift in this grade and contract of product ahead of the event. Butter prices lifted another 2.9%. Unsalted butter to ship in June was up 2.3%, a smaller lift than anticipated by the Derivatives market, which expected a 4% increase. Butter reached an average price of US$5654/t – it was last at this level in late October. The skim milk powder (SMP) price index lifted 3.6%. Medium heat SMP to ship in June was up 2.9%, again a little less than expected by the Derivatives market. The Derivatives market expected a 3.7% increase in this grade and contract of SMP. NZ SMP continues to command a premium over European product, though prices for European SMP did also lift. Medium heat SMP offered by Arla largely sold for US$1770/t (compared to the US$1935) for Fonterra product. Cheddar prices lifted 4.6% and rennet casein was up 3.1%. Lactose prices bounced 14.8%, reaching an average price of US$687/t. This is an increase of 73% since January. There were 102 winning bidders at the April 17 GDT event. There was 19,262t of product sold, and the event lasted 2 hours and nine minutes. Article sourced from AgriHQ.
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