June 2, 2011

Fonterra's milk powder prices increase

The average price of milk powder increased in Fonterra Cooperative Group's most recent online auction, thus, attaining the peak level since early March due to gains in skim milk powder.

The average price of milk powder rose 4.5% to US$4,306/tonne, according to results on the media.

That follows a 1.1% decline in the previous auction two weeks ago.

The latest sale results come after government figures showed New Zealand's soft commodities helped drive merchandise trade to a record in April while the terms of trade reached a 37-year high in the first quarter and the ANZ

Commodity Price Index edged up to a new record last month. Fonterra has flagged what may be a record payout to its farmers for the current season that started yesterday (Jun 1).

The average price of whole milk powder fell 3% while skim milk powder jumped 12.9% and anhydrous milk fat rose 6.2%.

Milk protein concentrate, one of the new cheese products, traded at an average US$6,430/tonne, up from US$6,300/tonne in its debut sale two weeks ago. Rennet casein rose to an average US$10,252/tonne from US$9,778.

There were 80 winning bidders from 146 participants over 12 rounds. The platform has 338 qualified bidders, up from 333 in the last auction.