Global Dairy Trade prices defy market expectations to post modest gain

Global dairy prices settled at auction on July 16, after a big fall two weeks ago. The Global Dairy Trade price index was up 0.4 per cent - a better result than expected by futures markets and pundits. It followed a 6.9pc decline at the July 2 event, which wiped out the gains across the past 12 months for some commodities. The cheddar index led the way at the latest auction with a jump of 6.2pc, followed by anhydrous milk fat with a 4pc gain. But the powder prices again took a hit - with whole milk powder down 1.6pc and skim milk powder down 1.1pc. Westpac's New Zealand chief economist Kelly Eckhold said the auction was much better than feared, given recent futures markets pricing and the last extremely weak auction. "Futures market pricing had suggested price falls in the 4-5pc range after the last disastrous auction a fortnight ago," he said. "The market was thus rightly on edge." Mr Eckhold said Middle Eastern buyers were better supporters of the auction this time. "Chinese ...