In Fonterra Global Dairy Trade online auction events of the last two months, prices for dairy products have surged just over 16 percent. Last week’s event was no exception, with prices advancing up an impressive 4.8 percent overall.
Category leaders included anhydrous milkfat (up 17.2 percent), butter (up 4.6 percent), and skim milk powder (up 7.0 percent). The notable change in this event was price strength for fat-containing products. China was rumored to be a featured buyer, bidding up prices on the platform as its economy posted growth of 2.3 percent despite the global pandemic.
New Zealand is now past its peak production this season, so milk receipts will gradually start falling for the Southern Hemisphere. Precipitation has been better across the North and South Islands, and soil moisture/pasture conditions have improved for the tail-end of the season.