The Global Dairy Trade (GDT) price index, an indicator of globally traded dairy ingredients prices, has risen by 7.7% over the past fortnight.
Tuesday’s (6 September) rise builds on last month’s slightly more impressive jump of 12.7%, and was driven by impressive sales of anhydrous milk fat and skim milk powder (SMP).
GDT has now seen significant rises for the last three auctions, following six previous weeks of stagnation.
Despite this, the index remains 37% down on on this period two years ago.
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The result was slightly lower than many had forecast, mainly due to lower than anticipated whole milk powder sales as buyers remain reluctant to push the US$3,000/t (£2,236/t) barrier.
A global drop in production has aided worldwide dairy markets, with the UK down 8% in July on the same month last year.
The fortnightly GDT events measure bids from dairy commodities from participants spanning 80 countries around the world, including the EU, New Zealand, Australia, India and the US.