(Updates with detail)
WELLINGTON, March 2 (Reuters) - International dairy prices recovered slightly in the overnight GlobalDairyTrade auction held by New Zealand's Fonterra Co-operative Group, the world's biggest dairy exporter.
The GDT Price Index climbed 1.4 percent, with an average selling price of $2,253 per tonne, in the auction held overnight Tuesday. Whole milk powder, which makes up the bulk of the auction, rose 5.5 percent to $1,974.
A total of 21,880 tonnes was sold at the latest auction, falling 0.6 percent from the previous one, GlobalDairyTrade said.
After rising steadily since 2008 to scale record highs in 2013, global dairy prices have dropped sharply because of slowing economic growth in China and global oversupply of milk products.
The weak dairy prices have put significant pressure on New Zealand farmers, with an estimated 80 percent currently operating below break-even.
While the latest auction result is "great news for NZ’s dairy farmers, a sustained price recovery is likely to be some way off,” said AgriHQ dairy analyst Susan Kilsby. Overall market sentiment “still remains very bearish as global milk production is still expanded and stocks of dairy commodities are building," she added.
The auctions are held twice a month, with the next one scheduled for March 15.
The auction platform was set up by Fonterra and is operated by trading manager CRA International.
Participants include Fonterra, Amul, Arla Foods, Arla Foods Ingredients, DairyAmerica, Euroserum and Murray Goulburn. Products traded on the twice-monthly auction include whole milk powder, skim milk powder, butter, cheese, anhydrous milk fat, among others.
