Dairy auction prices surprised and posted solid gains overnight. Overall prices were up 4.2%, while key whole milk powder (WMP) prices lifted 3.4%. The result was broad based as almost all products posted price rises. Butter and cheese prices led the way, surging 10.3% and 6.3% respectively – further supporting those strong WMP prices. This outcome was counter to our forecast for a consolidation in prices this time. The futures market had pointed to a small WMP price fall at this auction. We noticed that Chinese buyers were particularly aggressive in this auction – taking an additional 10% of product in this auction ... (full story)