Surprise rise in dairy prices

However, there were mixed results across products: whole milk powder prices rose by 2.1%, while skim milk powder prices dipped 0.8%.

Butter prices rose by 4.5%, but anhydrous milk fat was up just 0.5%. Buttermilk powder, which wasn’t offered at the previous auction, was down sharply.

Westpac senior economist Michael Gordon says the auction results were surprisingly positive, against the backdrop of a severely weakened global economy as many parts of the world have locked themselves down to slow the spread of COVID-19.

“It was, however, in keeping with the calmer tone in world financial markets since the last auction on 18 March,” he says.

Key results:

AMF index up 0.4%, average price US$4,345/MT

Butter index up 4.5%, average price US$4,263/MT

BMP index down 11.9%, average price US$2,446/MT

Ched index up 0.2%, average price US$4,395/MT

LAC index up 4.4%, average price US$959/MT

RenCas index down 2.6%, average price US$9,717/MT

SMP index down 0.8%, average price US$2,514/MT

SWP index not available, average price not available

WMP index up 2.1%, average price US$2,820/MT