Expanding global milk supply and a drop in buying by Chinese importers as they run down inventories has weighed on dairy prices this year, although lower prices are now starting to entice other buyers back into the market, Rabobank's Agribusiness Monthly, released yesterday, showed. Supply won't abate soon though, with figures for New Zealand's 2014 season expected to show record milk production.
The GDT price index advanced 0.9% to US$3807 a tonne, the first gain after eighth consecutive declines. About 31,984 tonnes of product was sold, down from 37,012 two weeks ago.
In the latest GDT auction, butter milk powder surged 17% to US$4535/t, and rennet casein added 4.6% to US$11,155/t. Whole milk powder rose 2.4% to US$3658/t, while cheddar gained 2.4%, rising to US$4381/t.
Butter increased 1.8% to US$3699/t.
Anhydrous milk fat slid 3.8% to US$3898/t, while skim milk powder slipped 0.2% to US$3855/t.
Milk protein concentrate and lactose weren't offered at the event.
Ahead of the release of the latest GDT data, the NZ dollar was trading steady at US 0.8675 at about 12:30am Auckland time. After the release of the latest GDT data, the kiwi slid as low as 0.8643 and recently traded at 0.8649.
The US dollar advanced against most major currencies after a report showed consumer prices rose faster than expected last month as Federal Reserve policymakers began a regularly scheduled two-day meeting in Washington.
There were 124 winning bidders out of 193 participating bidders at the auction over 15 rounds. The number of qualified bidders was 690, down from 738 two weeks ago.
