Dairy product prices at Fonterra's Global Dairy Trade auction have risen for the third straight time as buyers stocked up in anticipation of easing output.
The GDT price index climbed 5.9 per cent from the previous auction three weeks ago. The average price was $US3553 ($NZ4974) a tonne. Some 22,197 tonnes of product was sold, down from 23,319 tonnes three weeks ago.
Whole milk powder rallied 7.6 per cent to $US3226 a tonne.
"Falling milk production in New Zealand-and revisions to offer volumes-continue to support prices on GDT," Amy Castleton, AgriHQ dairy analyst, said in a note.
"There were no revisions to whole milk powder volumes ahead of this latest event, but buyers do seem to be more nervous that they will not be able to fulfil their requirements if New Zealand milk production continues to fall."
Butter milk powder jumped 8.4 per cent to $US2039 a tonne, while butter rose 7.9 per cent to $US5277 a tonne
Skim milk powder added 7.2 per cent to $US1932 a tonne, while cheddar gained 7.2 per cent to $US3739 a tonne.
Rennet casein increased 5 per cent to $US4943 a tonne, while anhydrous milk fat rose 0.5 per cent to US$6,581 a tonne.
"Volumes of skim milk powder and butter had been pulled back ahead of this event," Ms Castleton said.
"Anhydrous milk fat volumes had been lifted, but there is strong demand for this commodity, which is keeping prices high."
No prices were available for lactose.
The New Zealand dollar last traded at US73.08 cents as of 12.14pm in New York, compared with US72.65c at the previous close in Wellington.
There were 126 winning bidders out of 188 participating at the 15-round auction. The number of qualified bidders rose to 524, up from 517 at the previous auction.