Global dairy prices rebounded in Fonterra’s overnight auction. Prices have risen only twice in the past seven fortnightly auctions.
The index rose 1.9% to $US3637 a tonne, the highest in eight months.
It was boosted by higher prices for anhydrous milk fat (up 5.8% to $US6354/t), cheddar (up 4.4% to $US4205/t), skim milk powder (up 3.0% to $US2047/t) and butter (up 2.4% to $US5787/t).
Whole milk powder, which accounted for half the product sold, rose 0.2% to $US3226/t.
Rennet casein fell 6.1% to $US4876/t and lactose dropped 3.5% to $US687/t. Buttermilk powder was not offered.
The auction featured 111 winning bids over 14 rounds out of 164 participating bidders.
Total volume was 18,161 tonnes, down from 19,508 tonnes two weeks ago.
The price rise underlines predictions that the farm gate milk price will remain above $6kg of milk solids.
ANZ expects the opening price of the 2018/19 season will be $6.75kgMS based on an exchange rate of 70USc to the NZ dollar. The current rate is just under 69USc.
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