Dairy cows grazing© Tim Scrivener

Tuesday’s (6 October) Fonterra Global Dairy Trade (GDT) online auction recorded a fourth consecutive rise, although volumes remain relatively low.

The index of dairy commodity values rose 9.9% compared with the result of the previous sale (15 September), taking it back above levels last seen in April this year, though still less than half the level seen back in October 2007.

The latest auction produced increases across all products except butter, with powders particularly strong.

The weighted average across all commodities rose to US$2,834/t (£1,864/t).

See also: China builds 100,000 cow dairy unit to supply Russian market

The three previous auctions saw increases of 16.5% (15 September) 10.9% (1 September) and 14.8% (18 August), following 10 consecutive falls since spring this year.

EU milk production continues to run ahead of last year, up 2.4% in the first half of the year, although supplies in Ireland rose by more than 12%.

New Zealand production has begun to slow and will fall by 5% in the NZ milk year to 31 May 2016, said farmer co-op Fonterra.

GDT auction 6 October 2015 – results

  • Butter – weighted average selling price US$3,037/t (£1,995/t) – index down 2%
  • Cheddar – weighted average selling price US$3,234/t (£2,124/t) – index up 0.5%
  • Anhydrous milk fat – weighted average selling price US$3,763/t (£2,472/t) – index up 9.9%
  • Butter milk powder – weighted average selling price US$1,945/t (£1,114/t) – index up 13.8%
  • Skim milk powder weighted average selling price US$2,267/t (£1,489/t) – index up 13.4%
  • Whole milk powder – weighted average selling price US$2,824/t (£1,855/t) – index up 12.9%
  • Rennet casein – weighted average selling price US$6,048/t (£3,973) index up 4%
  • Lactose – weighted average selling price US$524/t (£344/t) index up 5.9%

The Global Dairy Trade online auction is owned by New Zealand co-op Fonterra.

It holds two online auctions each month, with dairies from Europe, India, the US, New Zealand and Australia selling commodities to 650 buyers from more than 90 countries.