The fifth Global Dairy Trade auction of the year posted a rise in dairy prices for the first time this year. The auction is up 1.4%.
The latest auction comes after a 2.8% fall in dairy product prices.
Rennet Casein posted the highest increase (+14.9%) while Anhydrous Milk Fat was the biggest faller (-8.3%).
Skimmed Milk Powder (SMP) was up 1.3% and Whole Milk Powder (WMP) was up 5.5%.
WMP prices have remained weak this year. After the fourth Global Dairy Trade auction, prices dropped 3.7% putting overall WMP pries down 18% since the end of 2015.
It was hinted yesterday by New Zealand bank ASB that the auction could post it’s first rise of the year with the futures market hinting that WMP could increase 6%.
Expecting the rise was Rural Economist with ASB, Nathan Penny, who said that this rise will provide some relief, at least in terms of sentiment, for farmers.
Global Dairy Trade – Key Results
- AMF index down 8.3%, average price US$3,254/MT
- Butter index down 0.5%, average price US$2,811/MT
- BMP index down 2.9%, average price US$1,452/MT
- Ched index down 0.7%, average price US$2,528/MT
- LAC index up 7.9%, average price US$613/MT
- RenCas index up 14.9%, average price US$4,569/MT
- SMP index up 1.3%, average price US$1,802/MT
- WMP index up 5.5%, average price US$1,974/MT
Meanwhile, EU milk deliveries for 2015 finished 2.5% ahead of the volumes collected in 2014, the latest figures from the Milk Market Observatory (MMO) show.
After the removal of quotas in April last year, EU milk production surged ahead with all monthly volumes post-quota exceeding their 2014 equivalents.
Irish milk production for 2015 was 13.3% higher than it was in 2014 and posted the strongest increase of all Member States in milk production.
The next highest milk producer after Ireland was Luxembourg with an 8.8% increase in production for 2015.
Looking at the MMO figures for milk production post-quota (April to December), Irish milk production increased by 16.2%, again the highest increase in production.
