Dairy auction bounce may signal start of recovery

A strong bounce in global dairy prices suggests that dairy might finally be starting to recover, according to global market analysts.

A Global Dairy Trade auction held in the early hours of Wednesday morning showed dairy prices rose 6.6% to an average of $2,436 (€2,175) per tonne with whole milk powder surging 9.9% to an average of $2,265 (€2,022). The gain was the most since October 2015, according to a Reuters report.

“Dairy commodity markets are waking up to the fact that global milk production is slowing,” said AgriHQ dairy analyst Susan Kilsby.