Global Dairy Trade auction: Prices rise 2.5 pc across the board

This is the second positive event in a row after the index rose 3.2 per cent two weeks ago. File photo / Brendon O'Hagan

Prices continue to rise in the latest Global Dairy Trade auction, held overnight, with a 2.5 per cent increase across the board.

It is the second positive event in a row after the index rose 3.2 per cent two weeks ago.

Whole milk powder increased by an impressive 5 per cent to an average of US$3230/MT – building on the previous auction’s 1 per cent rise to US$3089/MT.

Skim milk powder - Fonterra’s second-biggest reference product - was up 1.5 per cent, to an average of US$2787/MT; a modest increase compared with the hefty 7.0 per cent gain, to an average of US$2776/MT, from two weeks ago.

Butter milk powder crept up 0.8 per cent to an average of US$2468/MT, while butter increased 2.4 per cent to an average of $US4947/MT - adding to its positive 4.9 per cent, to an average of US$4821/MT, in the previous auction.

Cheddar also gained a healthy 4.5 per cent rise, to an average of US$4561, building on an impressive 5.7 per cent jump, to an average of US $4411/MT, from two weeks ago.

Bucking the upward trend was anhydrous milk fat, which fell 2.4 per cent to an average of US$4832/MT.

Lactose and sweet whey powder were not offered at this event.

23,265 MT of product was purchased by 153 successful bidders, compared to 22,713 MT and 105 winning bidders last time.

On April 3, Fonterra lowered its forecast farmgate milk price for the 2022/23 season from a range of $8.20 - $8.80 per kilogram of milk solids (kgMS) and a midpoint of $8.50 to a new range of $8.00 to $8.60 kgMS and a midpoint of $8.30.

Its forecast 2022/23 normalised earnings guidance is in a range of 55 to 75 cents.