The trade weighted index went up 4.5% in Fonterra’s GlobalDairy Trade auction this morning.
WMP (Whole Milk Powder) was down 3% to $3,780/MT; SMP (Skim Milk Powder) increased 12.9% to $4,372/MT; AMF (Anhydrous Milk Fat) was up 6.2% to $5,669/MT; RenCas (Rennet Casein) at $10,252/MT and MPC70 (Milk Protein Concentrate) at $6,430/MT.
Radio New Zealand reports that record prices for exports might prompt consumer resistance.
However, floods in the United States have ruined a lot of feed crops which will impact on milk production there.
Russia will lift its ban on grain exports on July 1 which will ease concerns over shortages caused by drought:
France, Europe’s top grower, is suffering from the driest spring in 50 years, forecaster France Meteo said. Showers were expected this weekend after rain helped crops in Germany, Telvent DTN said.
What happens in Europe and the USA does have an impact on prices for our produce, but growing demand from China is helping to keep prices up.