Dairy prices up 1.8% in GDT auction as whole milk powder soars
BUSINESSDESK: Prices of dairy products rose in Fonterra's latest GlobalDairyTrade auction, with whole milk powder posting its biggest gain since March last year.
The GDT-TWI Price Index rose 1.8% compared to the last sale two weeks ago. The average winning price gained to $US3399 a metric tonne.
Whole milk powder, the biggest product by volume, climbed 9.2% to $US3421 a tonne, the biggest gain since March 1 last year, when the price jumped 9.6%. Skim milk powder rose 0.8% to $US3325.
The latest sale marks the fifth in six where prices have gained and pushes the GDT-TWI price to the highest since March this year. The Thomson Reuters/Jefferies CRB Commodity Index has also recovered from its lows this year, set in June.
The total volume sold fell to 52,828 tonnes from 59,307 two weeks ago.
Anhydrous milk fat fell 3.2% to $US2879 a tonne and cheddar dropped 9.9% to $US2990. Butter milk powder rose 4.3% to $US3289 a tonne. Lactose was not offered.
Milk protein concentrate rose 4.2% to $US6117 a tonne and rennet casein fell 2.2% to $US7254.
There were 134 winning bidders over 15 rounds. There were 178 participating bidders out of a total number of qualified bidders of 725.