News
Global milk prices may have finally turned the corner, boosting the economic outlook in New Zealand, the world’s biggest dairy exporter.
Prices for whole milk powder could surge more than 11 percent at the GlobalDairyTrade auction later Tuesday, analysts said, citing gains in futures contracts. That would follow a 9.9 percent jump at the last auction a fortnight ago as signs of a swing in sentiment began to emerge.
“Typically that’s when you see buyers piling into the market just to secure product now before prices move higher, which in turn stimulates demand,” said Susan Kilsby, a New Zealand dairy analyst for AgriHQ. “What’s really changed is that global milk supply is slowing in most parts of the world as a result of prices being low for so long, and we’re seeing an increase in demand from China.”