18 Sep 2013

Milk prices recover slightly

1:51 pm on 18 September 2013

International milk prices have only slightly recovered from an earlier drop in the latest global auction but prices are still about 50% higher than a year ago.

The GDT Price Index rose 0.3% overnight Wednesday after falling 1.1% earlier this month.

The average selling price in the twice-monthly auction was US$4,880 per tonne.

But volume is down 12.7% with 46,664 tonnes sold.

Butter was the biggest mover - up 5.2% - to be 3,900 a tonne.

Whole milk powder rose just over 1%, while skim milk powder fell by 1.7%.

While there were no spectacular price moves - it was the auction's 100th trading event.

Typically the GDT online auction lasts for two hours and sells enough product to fill a container ship which represents 2,500, 20ft containers worth around $200 million.

GDT director Paul Grave says the auction has given farmers a very transparent view of their products in the international market twice a month.

He says six global dairy companies now participate in the auction.