— Susan Kilsby, AgriHQ
Dairy prices rose for the fifth consecutive time at the latest auction in New Zealand, pointing to a solid recovery. The Global Dairy Trade Price Index climbed 3.2% to an average selling price of $3,313 per tonne after rising 3.6% at the prior GDT auction. Analysts suggested that the 50% price rebound during the past year could be temporary; however, the fifth straight rise erased their doubts over the market's ability to maintain gains. The price of whole milk powder advanced 1.3% to $3,312 per tonne, the butter price surged 11.2% to $5,479 per tonne, whereas prices of anhydrous milk fat jumped 8.2% to $6,631 per tonne. Meanwhile, the butter milk powder price rose 7% to $1,980 per tonne. Prices of lactose, skim milk powder and cheddar climbed 2%, 1% and 0.6%, respectively. According to analysts, the strong price rebound was mainly driven by tightening milk supplies. Later in the day, Statistics New Zealand reported that its Producer Price Index rose 0.8% in the March quarter, following the prior quarter's gain of 1.0% and topping analysts' expectations for a 0.7% increase.
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