Prices of New Zealand dairy products have gained in the latest GlobalDairyTrade auction and volumes remained high for a second sale, suggesting overseas buyers aren't fazed by elevated nitrate levels in Westland Milk's lactoferrin.
The GDT Price Index, previously known as the GDT-TWI Price Index, rose 2.3 per cent compared to the last sale two weeks ago, the fourth gain in five auctions. The average winning price was $US4941 ($NZ6122) a tonne, compared to $US4847 a tonne.
The total volume of dairy products sold at the latest auction slipped to 56,173 tonnes, from 60,587 tonnes two weeks ago, which was the biggest on record for the GDT site.
Prime Minister John Key said this week that Chinese officials were responding constructively to the Westland Milk issue and understood it wasn't a food safety issue.
Fonterra's scare over a potentially botulism-contaminated batch of whey powder had previously also appeared to have little affect on buyers.
Commodity prices have broadly strengthened based on the Thomson Reuters/Jefferies CRB Commodity Index, which is near its highest level in four months.
The average winning price of whole milk powder, the biggest product by volume, rose 2.8 per cent to $US4005 a tonne. Skim milk powder fell 0.7 per cent to $US4426 a tonne.
The price of anhydrous milk fat rose 7.1 per cent to $US4931 a tonne and butter milk powder fell 3.1 per cent to $US4689 a tonne. Butter rose 3.3 per cent to $US3614 a tonne.
Cheddar rose 0.9 per cent to $US4375 a tonne. Lactose wasn't offered and milk protein concentrate rose 1.5 per cent to $US7828 a tonne. Rennet casein rose 1.9 per cent to $NZ10,085 a tonne.
There were 112 winning bidders over 14 rounds. There were 184 participating bidders out of a total number of qualified bidders of 866.