Anhydrous milk fat and skim milk powder were the stand out dairy commodities, increasing by 24.4% and 21.3% respectively across all contracts. Traders and handlers did notice an increase in prices leading up to the auction and it's expected the latest results will re-energise buyer interest. It was assumed prices would hold or be slightly firmer seeing all the contract periods are now for the new season, but the dramatic rise took many by surprise.
In the Oceania markets, recent dairy prices have been more mixed. The butter markets continue to be unsettled and this was reflected in the US$119/tonne drop in the fortnightly price to US$3862/tonne. Butter prices are now below last year's levels by at least US$1900/tonne.
It appears skim milk powder prices may have reached the bottom as there is improved optimism that prices are starting to firm. Oceania markets are steady and prices are unchanged to higher. Skim milk powder prices in Oceania have increased by US$25/tonne to US$2800/tonne on average. The whole milk powder markets are not as strong with prices unchanged to slightly lower. But many traders and handlers believe that there is upside in the coming weeks.
The cheddar markets remain flat with prices holding steady at US$3600/tonne. Prices are however down 20% on the same time last year. It's hoped that the recent strength at the latest global dairy trade auction will flow through to most dairy products as buyer interest is reignited.
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