Latest auction pushes index up 4.3%.
Dairy commodity prices have surged again at the latest GobalDairyTrade auction overnight, gaining 4.3% to push the index close to the seven-year peak seen in March.
Cheddar cheese was the big mover, up 14.1% to US$5058 a tonne, while skim milk powder gained 6.6% to US$3627 a tonne.
The staple whole milk powder rose 2.7% to US$3921 a tonne.
The price changes drove the overall dairy price index to 1310, its highest since March 2 and itself at levels last seen in early 2014.
The auction gains come a week after dairy giant Fonterra boosted its forecast milk price for the 2021/22 season to a range of $7.90-$8.90 a kg of milk solids for a mid-point of $8.40.
If the price held at that level it would equal the co-op’s highest payout in 2014, when $13.2 billion was paid to Fonterra farmers for their milk.
The latest auction sold 29,915 tonnes of dairy commodities, up from 27,836 tonnes at the event in mid-October.
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