International Dairy price has new high

Dairy prices in the international market have returned to register significant appreciation in yesterday's trading platform Global Dairy Trade biweekly (GDT), which has among its key players to New Zealand co-operative Fonterra.
The price of full milk powder went up 12.9% over the previous auction, for an average value of $ 2,824 per tonne, while the skimmed-milk powder was discharged of 13.4%, to an average price of $ 2,267, according to data released by the platform. The prices negotiated in this auction are reference to the dairy market. The trading session yesterday had 180 participants and sold 35,243 tons of dairy products. In the previous auction, on 16 September, there were 186 participants and 36,050 tons of dairy products were sold.
With the new enhancement, the Brazilian milk powder is more competitive in the international market despite the dollar having downloaded in relation to real in recent days, say analysts.
After reaching historic lows in August, milk prices at the auction of the GDT platform started to climb in the middle of that month, after Fonterra, the world's largest dairy exporter, announced that it would reduce its offers in the trading sessions. The effect was immediate and there was high in all auctions since the announcement.
To Laertius Barbosa, Jussara, the new dairy products recovery still reflects the strategy of Fonterra to reduce milk offerings. But Vaccaro Galan, an analyst at consulting firm specializing in MilkPoint dairy, believes that the high of yesterday is a result of increased demand for dairy products on the part of African countries and the Middle East.
In addition, according to the analyst, there are also negotiations with dairy products at higher prices outside of the auction, which influenced the trading values. In Europe, for example, has been in business with full milk powder for between $ 2,600 and $ 2,800 and in Oceania, the $ 3,000 per tonne.
China, however, one of the clients who have the capacity to influence international prices, still out of the market, according to Galan. For the analyst, the supply reduction by Fonterra has influence on the share price traded at the auction, but it's not the main reason. He added that also begins to be fall in stocks of u.s. dairy, another important dairy exporter.