Prices of dairy products rose in Fonterra's latest GlobalDairyTrade auction, snapping three straight declines as prices rose for skim and whole milk powder.
The GDT-TWI Price Index rose 1.1 per cent compared to the last sale two weeks ago. The average winning price rose to US$4,598 a tonne from US$4,443 a tonne. Whole milk powder, the biggest product by volume, gained 2.2 per cent to US$4,668 a tonne and skim milk powder rose 3.2 per cent to $4,284 a tonne.
The sale is the second since Fonterra last month raised its forecast 2014 payout to farmers and earlier this month it underlined the estimate by setting the guaranteed price for next season at the same level of $7 per kilogram of milk solids. That means farmers can chose to lock in their sales to the cooperative at that price.
The total volume of dairy products sold at the latest auction fell to 23,674 tonnes from 24,252 tonnes.
The price of anhydrous milk fat rose 1.7 per cent to US$4,589 a tonne and butter milk powder fell 2.2 per cent to US$4,315 a tonne. Butter rose 4.7 per cent to US$3,925 a tonne.
Cheddar fell 6.5 per cent to US$4,578 a tonne. No results were given for lactose and milk protein concentrate weren't offered. Rennet casein sold at US$9,707 a tonne.
There were 99 winning bidders over 10 rounds. There were 179 participating bidders out of a total number of qualified bidders of 831.