Global Dairy Trade index is 25% higher than it was 12 months ago.
Global Dairy Trade prices increased by 1.9% in the second fortnightly November auction and the GDT index is now the highest it has been since July 2022.
At 1239 points currently the index is 25% higher than it was 12 months ago and is returning to the slopes of the 1300-plus, 10-year record peak reached between January and May 2022.
Price increases were strong for milk powders and milkfat products but fell for cheddar and mozzarella.
Whole milk powder, which was half of the auction volume, rose 3.2% and skim milk powder was up 0.9%.
Anhydrous milk fat went up 1% and butter 0.5%.
Mozzarella fell 6.6% and cheddar 3.1%.
NZX dairy analyst Rosalind Crickett said the New Zealand milk production figures for October are expected to show a 2.5% lift in the season to date and the outlook for dairy production elsewhere in the world is constrained.
She said the United States is grappling with bird flu and Europe with bluetongue virus.
Demand for imported milk powders is improving in China as local inventories run down, having dropped 90% in the latest month-end statistics.
“Chinese milk production has also been on the way down in recent months in a bid to curb unfeasible domestic raw milk prices, which are the lowest since 2013.”
Dairy analysts’ forecasts for farmgate milk prices are at or above $9.50, which is the new Fonterra mid-point prediction, and the SGX-NZX milk price futures market is quoting around $9.90.
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