Dairy product auction prices rise 0.7%, whole milk powder falls
It was the third straight gain on the sales platform, led by cheddar and anhydrous milk fat.
Prices of dairy products rose in Fonterra's latest GlobalDairyTrade auction, the third straight gain on the sales platform, led by cheddar and anhydrous milk fat, while milk powder prices fell.
The GDT-TWI Price Index rose 0.7% compared to the last sale two weeks ago. The average winning price gained to $US3348 a metric tonne. Whole milk powder, the biggest product by volume, fell 1.9% to $US3276 and skim milk powder dropped 1.7% to $US3402.
Fonterra's brokers may be cheered as the gains come as it enters the bookbuild for the $525 million Fonterra Shareholders' Fund, which gives outside investors access to the co-operative's dividend payments.
The auction comes as the Thomson Reuters/Jefferies CRB Commodity Index of 19 commonly traded commodities is at its highest level in a month, having gained 1.6% overnight.
The total volume sold fell to 48,335 tonnes from 54,106 tonnes two weeks ago.
Anhydrous milk fat rose 1.2% to $US3066 a tonne and cheddar jumped 12.4% to $US3436. Only one contract date traded for butter milk powder, due February 13, at a price of $US3615. Lactose was not offered for sale.
Milk protein concentrate fell 1.8% to $US6040 a tonne and rennet casein was unchanged at $US7916.
There were 147 winning bidders over 11 rounds. There were 186 participating bidders out of a total number of qualified bidders of 726.
(BusinessDesk)
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Dairy product auction prices rise 0.7%, whole milk powder falls
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