Whole milk powder (WMP) led the way, up 21% to $4364 a tonne.
Prices lifted for almost every other offering, with butter up 13.7% and anhydrous milk fat (AMF) up 7.4%
“The cost of producing milk in China right now is expensive,” Rabobank senior dairy analyst Emma Higgons said.
“Feed prices in China – particularly for corn and soymeal – have hit multi-year highs.
“In response, the average Chinese milk prices for January 2021 sat just below record-highs last experienced in February 2014. This has helped to ensure a price discount wider than the historical five-year average for Oceania WMP prices compared to the Chinese domestic average milk.
“As at the middle of February 2021, the average milk price was beginning to ease back. We think this change is more a factor of seasonal weakness post-Chinese New Year, in addition to resurgences of covid-19 hotspots in January 2021 rather than the beginning of a significant adjustment in trajectory of Chinese milk prices.
“Nonetheless, it’s definitely something we are keeping a close eye on.”
Higgins also pointed to lower production in the Northern Hemisphere and the slowing down of the season here, as factors in the rise.
“It makes the scramble for dairy product highlighted on the GDT overnight seem somewhat understandable – if not highlighting more volatility to come,” she said.
