Prices rose in Fonterra's overnight auction, led by whole milk powder, while butter milk powder fell.
The average winning price rose 1.6 per cent to US$3,594 a metric tonne, based on the trade-weighted price index calculated by the company after the latest sale at its globalDairyTrade auction. Prices rose
the most for the longest contract for delivery in June-to-August 2011.
Whole milk powder rose 2.6 per cent and skim milk powder gained 0.5 per cent.
Butter milk powder declined 2.7 per cent and anhydrous milk fat rose 0.3 per cent.
The auction results come after the ANZ Commodity Price Index for November rose 4.5 per cent to a new high of 296.2., with dairy prices climbing 1 per cent. Exports of dairy products helped narrow the nation's trade deficit in October, driven by sales of milk powder to China.
Prices for milk powder may weaken in 2011, as more US dairy production adds to global supplies.
There were 122 participating bidders in the latest sale, of a total 306, with 77 winners after 10 bidding rounds.
