The Global Dairy Trade auction result increased by 4.9% on average this week, bringing an end to a run of negative results for the New Zealand-based dairy commodity sale.

This was the first auction since the 2.9% decline in the middle of August. Whole milk powder drove the result, up 5.1% to US$3,610.

The news will come as a boost to Irish dairy co-op board members, who sit down next week to set August milk prices.

The positive news comes as New Zealand monthly milk supply heads for peak in October at over 3bn litres. September supply is normally about 80% of October supply.

The fact that the GDT turned around this week suggests traders feel the market has bottomed out, so stocks are low and it’s likely Chinese buyers are back in the market in a big way.