Prices have risen slightly in the global dairy auction overnight, where milkfat products continue to be the star performers.
It follows a small rise a fortnight ago and is in line with steady price trends for the past three months. The view that butter is no longer considered unhealthy is driving up demand and resulting in a global shortage of butter. The shortage is good news for the market, where butter prices have risen by 1.2 percent to a new record of $US6026 a tonne, and the price of a 500g block of butter is also at a record high, reaching $5.39. The strong butter prices are helping to drive global milk prices up, which is expected to put more money in farmers’ pockets, and into the economy. Overall there was 34,117 tonnes of product traded at the September 19 GDT, 1.8 percent more volume than at the previous event.