Fonterra dairy product prices snap four-month slide, rise 1.7% as milk powder gains

Wednesday 19th October 2011 1 Comment

Average prices of dairy products rose for the first time since Fonterra Cooperative Group’s online auction in early June, led by increases in whole and skim milk powder.

The GDT-TWI Price Index rose 1.7 percent, according to the latest results posted on the globalDairyTrade auction website. The average winning price rose to US$3,540 a metric tonne, climbing from the lowest level in more than a year in the previous auction two weeks ago.

Commodity prices have recovered somewhat since sinking to a 12-month low at the start of October, based on the Thomson Reuters/Jefferies CRB Commodity Index. Hopes that European leaders can find agreement on how to tackle the region’s debt crisis have soothed concerns global growth will be derailed, though China’s economy slowed to a 9.1 percent pace in the third quarter, the weakest in two years.

Whole milk powder rose 5.7 percent to US$3,503 a tonne in the latest sale and skim milk powder gained 3 percent to US$3,292. Anhydrous milk fat fell 1.7 percent to US$3,645 a tonne and milk protein concentrate fell 6.4 percent to US$6,295 a tonne. Rennet casein tumbled 14 percent to US$7,040 a tonne. Butter milk powder fell 1.9 percent to US$3,019 a tonne and cheddar fell 8.4 percent to US$3,497 a tonne.

There were 120 winning bidders from 149 participants over 12 rounds. The platform has 443 qualified bidders, up from 427 at the last auction.

(BusinessDesk)

BusinessDesk.co.nz

Comments from our readers

On 19 October 2011 at 8:45 am ol alfie said:

It's good to see the change & uplift.We need every bit of good news we can grab hold of. Just imagine the plight we would have if it wasn't for dairying? ''Go the Farmers ''