ANZ reports the GDT-TWI index rose a massive 14.8 per cent overnight as there was a scramble to secure reduced New Zealand ’s supply before the end of the season.
Wholemilk powder prices hit its highest level ever, rising 21.2 per cent to US$5,116 per tonne. This will certainly increase the pressure for a further increase in the 2012-13 milk price.
However, whole milk powder prices for new season product (contract period September 2013) in 2013-14 only rose by 5 per cent to US$4,285 per tonne. This suggests recent rises have been short-term buying to secure product as the drought has reduced end of season supply. The exact opposite to last season.
All-in-all a positive result though which helps reduce some of the financial pressure from the drought that has gripped the North Island and parts of the South Island over the last two months.