The futures market was expecting an increase in dairy prices but the 12.7% rise in the GlobalDairyTrade price index in this morning’s auction exceeded expectations.
It’s too early to get too excited but the 18.9% increase in the price of whole milk is encouraging.
And while two increases doesn’t make a trend it’s a welcome change from consecutive decreases.
The result saw the New Zealand dollar rise from around 72.40 US cents before the auction to 72.70 cents by 5am. . .
That seems a bit premature to me, the price is still a long way from what’s needed to get to a payout of $5.05 which is break-even for most farmers.