Low powder prices for skimmed milk powder (SMP) and powder intervention stocks overhanging the market remain the biggest threat to reducing milk prices and disimproving buyer sentiment. For the moment, the mood music is for global prices to remain static.

The latest auction at the Global Dairy Trade (GDT) event in New Zealand has seen the price index rise by 1.6%, with average prices of $3,005/t. More importantly, the price index for whole milk power (WMP) increased by 2.4% with an average price of $2,924 at Tuesday’s auction.

Prices for SMP fell back marginally by 0.8%, with an average weighted price at $1,913. Butter has been trading strongly recently, but the index fell 1.6% on Tuesday, with the average butter price at $4,751.

Butter milk powder was back 12.2% in the index to an average weighted price of $1,588.

The anhydrous milk fat index was up 2.5% to an average price of $5,936 and rennet casein increased by 6.9% to $6,260. Cheddar dropped by 4.4% on the index to an average price of $3,288 whereas lactose was up 2.2% to $927.

Overall, there were 22,642mt of product sold over 13 bidding rounds, a 0.64% increase compared the previous auction. That auction had a 1.7% increase in the price index, meaning this week’s result is the second consecutive rise.

April, May and June futures contracts for WMP have been stable for the last week, which can also be used to gauge buyer sentiment in global dairy markets.