Dairy prices are up after the latest Global Dairy Trade auction.
Farmers saw a 4.9% rise in milk-derived commodities to $US3310 a tonne.
Whole milk powder is up 5.1%, skim milk powder 6.5% and butter prices up 8.8%.
Agri HQ chief analyst Susan Kilsby told the NZX that dairy commodity markets are “expected to generally remain bearish through the first half of 2018, although whole milk powder (WMP) has the potential to buck this trend”.
“WMP prices are starting to benefit from the tightening supply situation in New Zealand.
“Milk production in New Zealand faltered due to extremely dry conditions through the early summer period.
“It is anticipated that conditions for growing pasture will improve as the season progresses but output during the autumn period is expected to be well shy of that achieved last autumn,” she says.
