Dairy prices rise again at auction

Fonterra's GlobalDairyTrade auction has experienced its second rise in a row, bucking a downward trend since March.

Prices have risen for the second successive time in Fonterra's fortnightly GlobalDairyTrade auction, up nearly 11 per cent.

The GDT price index was up 10.9 per cent to an average price of $US2226 ($A3,128.38) on Wednesday morning. Whole milk powder, which makes up the bulk of Fonterra's exports, was up 12.1 per cent to $US2078.

Butter milk powder was up 30 per cent.

The price for whole milk powder had been expected to gain this week, providing some reprieve to investors nervous about the outlook for New Zealand's export sector where most dairy farmers are expected to make a loss this coming season.

The GDT price index has declined steadily since March before arresting the slide two weeks ago.


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Source: AAP


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