Dairy prices rise, GDT auction volumes increase

World milk prices rose, while sales volumes at the second Global Dairy Trade auction this month increased.

The GDT price index rose 1.9 percent at an average selling price of $4,287 per tonne at the November 16 auction. According to GDT, the index rose by 4.3% at the previous auction. In total, 30,397 tons were sold at the last auction, which is 1.6 percent more than at the previous one, according to the website of the auction site.

The results of the auction could affect the value of the New Zealand dollar, as the dairy sector produces more than 7 percent of the country's gross domestic product. The New Zealand Dairy Cooperative, owned by about 10,500 farmers, controls almost a third of the world's dairy trade. GDT Events is owned by the New Zealand-based Fonterra Co-operative Group Ltd but operates independently of the dairy giant. CRA International Inc., a US registered company , is the trade manager for the Global Dairy Trade auction, which is held twice a month.

November 16 trading results - on the GDT Events website: www.globaldairytrade.info

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