Global Dairy Trade began the New Zealand 2024-25 dairy season with a strong auction for milk powder sales from a wide distribution of buyers.
The GDT index rose 1.7%, which was the third consecutive GDT lift, helped by skim milk powder up 3% and whole milk powder up 1.7%.
Six of the seven commodities offered rose in price, including buttermilk powder, up 10.4%, butter, up 1.7%, anhydrous milk fat, up 0.9% and cheddar, up 0.2%.
Lactose was the only fall, down 1.9%.
The milkfat products continue their recent strength, with AMF now setting a new record at US$7417/tonne and butter $6864, very close to its recent record high of $7000 in early-2022.
AMF is now 58% higher than a year ago and butter is 28% higher.
NZX dairy analyst Rosalind Crickett said the futures market had been expecting higher prices for milk powders and lower for milkfats, so was therefore half right.
“The milkfat group face short-term supply constraints so, all things considered, the GDT results are in line with our expectations.”
WMP buying strength was in southeast Asia and Oceania and the SMP demand was from Europe.
