Dairy prices got off to a winning start at last night's GlobalDairyTrade auction, where prices rose at their quickest pace in more than a year, lifting hopes of an end to the market doldrums.
Prices at the first auction of the year rose by +3.6% from the previous auction, the biggest increase since December 2013.
It is the first time in 11 months that prices have risen at two successive auctions.
The rises juiced up the New Zealand currency, bolstering its value despite international woes.
There were gains in all products.
However, volumes sold of 33,669 tonnes was the lowest in a year and a half.
Nonetheless, the performance raised expectations that dairy prices, having halved during 2014, may at least have found a floor.
The largest rises were for milk powders, with whole milk powder rising by +1.6% from the previous auction. This increased its unusual discount to skim milk powder, which rose by +2.8%.
Prices of anhydrous milk fat rose by +6.8%.
Butter prices soared by +13.2%.
Cheese prices were up by +3.2%.
Because of similar changes in the exchange rate, these US$ price increases were very similar to the rises in NZ dollars.
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