World dairy prices rallied sharply at the latest GlobalDairyTrade auction, driven mostly by double digit gains in whole milk powder and butter milk powder and well ahead of market expectations. Whole milk powder prices are now 45% above year-ago levels. Anhydrous milk fat prices were up by 8.4% at $US4148 a tonne and skim milk powder firmed by 3.0% to $US2028 a tonne. Westpac said the last two GlobalDairyTrade auctions add "clear upside risk" to its current $4.60/kg farm gate milk price forecast. For the moment, ANZ is maintaining its farmgate milk price forecast at arouind the high $4 mark.

Source: Otago Daily Times August 16, 2016 20:37 UTC