The price of dairy products rose 2 per cent in the first GlobalDairyTrade auction of the year, recovering losses through the tail-end of last year.
The average winning trade-weighted price increased to US$3357 ($4027) per metric tonne from US$3311/tonne at the December 19 sale. The gains were led by a4.7 per cent boost in skim milk prices to US$3572 per tonne.
Prices for whole milk powder, which typically accounts for more than half the product sold, rose 1.6 per cent to US$3199 per tonne.
The total volume sold was 45,252 tonnes for US$151.9 million across 13 rounds of bidding. That was down from 47,195 tonnes at the last auction.
Last month Fonterra Co-operative Group, which owns the GDT platform, raised its forecast farm-gate payout and chief executive Theo Spierings said he expected dairy prices to rise in the first half of this year because of rising feed prices from unfavourable climatic conditions in the US, South America and Europe.
Anhydrous milk fat fell 0.2 per cent to US$3,169 per tonne at yesterday's auction, rennet casein prices declined 0.8 per cent to US$8401 per tonne, and cheddar dropped 1.9 per cent to US$3458 a tonne.
The average price of butter milk powder advanced 1.1 per cent to US$3640 a tonne and milk protein concentrate gained 1.4 per cent to US$6122 per tonne.
