The average price rose 2.5 percent at the Global Dairy Trade auction overnight to US$4021 (NZ$7075) a tonne.
In a note, New Zealand Exchange dairy analyst Rosalind Crickett said the results were “largely to be expected”.
It came off the back of New Zealand milk production data which showed the country had hit a new record for September collections and a 1.9 percent increase in milk solids.
“However, the growth trajectory seems to be slowing, with reports on the ground noting that North Island regions appear to be experiencing a drier than normal spring, with risks of El Niño in early-to-mid summer still being priced in in the background,” Cricket said.
This saw the whole-milk powder price increase 4.4 percent to US$3760 (NZ$6616) a tonne. Skim-milk powder was also up 3.4 percent to US$3975 (NZ$6995) and at its highest point on the platform in four years.
Crickett said “last-minute restocking ahead of the festive season” was also a possible factor, particularly with potential concerns about product accessibility in the months to come amidst a backdrop of drought and ongoing geopolitical tensions.
“With the rise in global protein demand for whey products, a rise in cheese production continues to put downward pressure on cheddar prices, which plummeted -7.3 percent as inventories and export volumes grow.”
Crickett said there was also strong buyer turnout from North Asia which also helped drive the increases, accounting for just over half the total product volume sold.