Dairy prices rebound from 3-year low in Fonterra's GDT sale
Dairy products prices rebounded from a three-year low as buyers return to the market, posting their biggest gain in almost two years, led by skim milk powder and anhydrous milk fat.
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BUSINESSDESK: Prices of dairy products rebounded from a three-year low as buyers returned to the market, posting their biggest gain in almost two years, led by skim milk powder and anhydrous milk fat.
The GDT-TWI Price Index rose 13.5% compared to the last sale in mid-May. The average winning price rose to $US2899 a metric tonne, the highest since April.
The price of skim milk powder jumped 21.3% to $US3011 a tonne. Whole milk powder rose 8.5% to $US2763 a tonne.
The average price at the sales rose for only the third time this year and weakening prices prompted Fonterra last month to cut its forecast 2012 milk payout and flag lower payments in 2013.
The decline has mirrored a broader trend in commodities amid doubts about global demand. The Thomson Reuters/Jefferies CRB Commodity Index edged up about 0.1% overnight from the lowest in almost two years.
Anhydrous milk fat rose 24.4% to $US3096 a tonne in the latest auction. Cheddar climbed 9.4% to $US3189 a tonne. Butter milk powder sold at an average $US2456 a tonne while lactose declined 1.3% to $US1992 a tonne.
Milk protein concentrate rose 10.9% to $US4339 a tonne. Rennet casein rose 19.6% to $US6890 a tonne.
There were 106 winning bidders over 16 rounds, the longest auction since November last year.
There were 170 participating bidders, the highest since the December 6, 2011, sale. The number of qualified bidders rose to 649 from 635.
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Dairy prices rebound from 3-year low in Fonterra's GDT sale
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