Dairy prices have recorded their biggest jump in three months.
The average price at the overnight auction rose 3.3 percent to US$3861 a tonne, following the 1.8 percent rise a fortnight ago.
The price of wholemilk powder, which strongly influenced the payouts for local farmers, rose 2.9 percent to US$3408 a tonne. SMP also reached to USD 2629/MT.
Prices for all other products also rose, including butter, up more than 5 percent, skim milk powder up 3.5 percent and mozzarella up nearly 10 percent.
The dairy season is winding down and recent market prices supported a forecast payout of $7.80 per kilogram of milk solids.
NZX dairy analyst Rosalind Crickett said wholemilk powder was at its second-highest price in the last 12 months.
“Purchasing was led by a perceived return to the market by North Asia on this occasion, with the region nearly doubling its buying activity,” she said.
Crickett said it could be driven by a slight drop in March milk production in China.
“Overall, the results overnight are pleasing to see for farmers as the curtain is drawn on the 2023/24 New Zealand milk production season.”
Thre were 177 participating bidder and total Quantity sold (MT) was 18,561.
