Prices of dairy products posted their biggest gain since early April in Fonterra Cooperative Group's latest GlobalDairyTrade auction, led by a jump in whole milk powder, the biggest product by volume.
The GDT-TWI Price Index rose 4.9 percent compared to the last sale two weeks ago. The average winning price rose to US$4,828 a tonne, the biggest gain since April 16, from US$4,643 a tonne two weeks ago.
Global commodity prices have recovered from their lows of late June. Thomson Reuters/Jefferies CRB Commodity Index has gained 4.7 percent since hitting a 12 month low at the end of last month and last stood at 288.48. New Zealand producers are being helped by a weaker New Zealand dollar. The ANZ NZD Commodity Price Index rose 0.9 per cent in June to a two-year high and is now within 6 percent of its March 2011 peak.
The total volume of dairy products sold at the latest auction eased back to 37,948 tonnes from 38,890 tonnes.
Whole milk powder, the biggest product by volume, gained 7.7 percent to US$5,058 a tonne, the highest since April 16, and skim milk powder rose 3.3 percent to US$4,566 a tonne.
The price of anhydrous milk fat rose 3.6 percent to US$4,742 a tonne and butter milk powder gained 4.8 percent to US$4,826 a tonne. Butter dropped 0.3 percent to US$3,693 a tonne.
Cheddar rose 2.1 percent to US$4,475 a tonne. Lactose and milk protein concentrate weren't offered. Rennet casein fell 5 percent to $9,744 a tonne.
There were 107 winning bidders over 13 rounds. There were 178 participating bidders out of a total number of qualified bidders of 849.
(BusinessDesk)
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Dairy product prices rise 4.9% in GDT auction, biggest gain since early April
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