Prices advanced by 3.7 percent in Fonterra’s biweekly auction, the largest jump since February. Nearly 200 participants secured 38,681 MT of products, with many achieving near-record prices for 2019.
Most products appreciated in price with the notable exception of cheese and lactose. Core products of anhydrous milkfat (up 2.6 percent), whole milk powder (up 3.6 percent) and, most significantly, skim milk powder (up 6.7 percent) moved higher. Notably, skim milk powder surged to new highs and is trading significantly above U.S. pricing.
One can attribute the bull run we’ve seen in nonfat dried milk (NFDM) prices directly to the strong international demand despite relatively high domestic inventories.