Prices of dairy products rose in Fonterra's latest GlobalDairyTrade auction, the third straight gain on the sales platform, led by cheddar and anhydrous milk fat while milk powder prices fell.
The GDT-TWI Price Index rose 0.7 per cent compared to the last sale two weeks ago. The average winning price gained to US$3,348 a metric tonne. Whole milk powder, the biggest product by volume, fell 1.9 per cent to US$3,276 a tonne and skim milk powder dropped 1.7 per cent to US$3,402 a tonne.
Fonterra's brokers may be cheered as the gains come as it enters the bookbuild for the $525 million Fonterra Shareholders' Fund, which gives outside investors access to the cooperative's dividend payments. The auction comes as the Thomson Reuters/Jefferies CRB Commodity Index of 19 commonly traded commodities is at its highest level in a month, having gained 1.6 per cent overnight.
The total volume sold fell to 48,335 tonnes from 54,106 tonnes two weeks ago.
