Whole milk powder prices surged further on the back of Fonterra’s latest online auction early this morning.

Prices averaged $US3022 a tonne, up 5.7% against last month’s trading event.

This flies in the face of global analyst predictions last month that forecast a drop in the average price which has climbed about 65% since July.

However, continuing upwards movement of the New Zealand dollar against the US will dull the shine of these gains.

During last night’s trade event, prices ranged from $US2825 per tonne to $US3095 per tonne.

Rising world milk prices mean newly listed PGG Wrightson offshoot NZ Farming Systems Uruguay (NZFSU) expects to beat forecasts of annual profit of $US1 million ($NZ1.27 million).

NZFSU, which listed in December 2007, forecast annual net profit from operations of about $US1.5m, including a performance fee payable to PGG Wrightson. The previous forecast excluded the performance fee.