Last week the average price on the online dairy auction increased 2.6 per cent to $US2283 a tonne. This follows an average decline of 1.4 per cent at the start of the month.
Average prices are still a long way behind the same auction two years ago, of $US3873/tonne.
Dairy Australia analyst John Droppert said the result was “stable … at lower levels” but there wasn’t much direction in the market.
He said it was too early to see the positive result as a sign of a recovery and attributed the drop in product sold — 18,113 tonnes, down from 20,615 tonnes at the start of the month — to seasonality.
Last week’s auction volume was about 30 per cent down on the same auction a year ago. The past five auctions have been about 10 per cent down on a year earlier, according to Mr Droppert.
Prices for whole milk powder traded in a range of about $US100 a tonne for contracts between June and November. The highest average price was $2288/tonne for a November WMP contract.
Source: WeeklyTimes