Positive run continues in Global Dairy Trade auctions

The dream run has continued for the dairy industry with the sixth positive Global Dairy Trade auction in a row.

Prices rose 1.8 per cent across the board in last night's event, which attracted 103 winning bidders for the 28,707MT of product on offer.

Whole Milk Powder - the biggest influencer on Fonterra's Farmgate milk price - backed up a 7.0 per cent gain in the previous event, with a further 2.3 per cent rise to an average US$3,458/MT.

Meanwhile Skim Milk Powder, the second biggest "reference" product for Fonterra, experienced the only fall - down 1.5 per cent to an average US$3,198/MT.

Results for other main commodity groups saw a range of increases, led by Butter Milk Powder with a 10.7 per cent jump to an average US$3,180/MT, while Butter shot up by 6.2 per cent to break the 5K mark, with an average US$5,028/MT.

Lactose increased by 3.8 per cent to an average US$1,217/MT, followed by lifts in Cheddar - up 2.3 per cent to an average US$4,178/MT and Anhydrous Milk Fat - up 1.3 per cent to an average US$5,463/MT.

In a market update this morning, Fonterra increased the midpoint of its forecast farmgate milk price for the 2020/21 season by 20 cents to $7.20, and lifted the bottom end of its range to between $6.90 and $7.50.