For the first time in five auctions the Global Dairy Trade index has dipped … by just under 1 per cent overall. The drop has broken a run of increases leading to the highest prices in almost nine years. Wholemilk Powder rose more than 22% in the past four auctions … but dropped 2.1% this time… going right against predictions. The Global Dairy Trade price index fell 0.9 per cent with tight supply underpinning demand, and Russia’s invasion of Ukraine adding to the pressure.

  • Anhydrous milk fat up 0.4% to $US7,111 per metric tonne
  • Butter – dropped for the first time in 12 auctions down 1.8 per cent to a record $US7,958
  • Cheddar up 0.3% $US 6,412
  • Lactose down 0.6% to $1,618
    And the powders
  • Skim Milk up 1.6% to $US 4,545
  • Whole Milk dropped 2.1% in US$ terms is $ 4,596 per metric tonne or NZ$6801in NZ dollar terms

Last week, Westpac pencilled in a 4% price rise for WMP and Immediately prior to the auction, the futures market had indicated a circa 5% lift in Whole milk powder. Westpac Agri. Analyst Nathan Penny says surging Covid case numbers in China has introduced uncertainty around global dairy demand in the world’s largest dairy market and with New Zealand the largest exporter of WMP and butter to China, any factors affecting demand there will soon be reflected in prices.