Fonterra milk powder prices edge up 1.9%, led by anhydrous milk fat

Sept. 15 (BusinessDesk) – Prices rose 1.9% at Fonterra Cooperative Group’s latest online auction of milk powder, adding to a surge at the previous sale and providing more certainty on forecast payments to farmers.

Prices rose 1.9% to US$3,663 a tonne, based on the gDT-TWI, an index of the four products on offer - whole milk powder, skim milk powder, butter milk powder and anhydrous milk fat. Whole milk powder climbed 1.4% to US$3,602, according to the globalDairyTrade website managed by CRI International.

The price gains add to the 17% jump in the last auction a fortnight ago after four straight months of decline that pushed the price of whole milk powder below US$3,000 a tonne. Fonterra last month affirmed its forecast payment to farmers at $6.90 to $7.10 per kilogram of milksolids while announcing a record 2.1 million tonnes of dairy exports for the year ended July 31, helped by demand from China and Russia.

The gains in the latest sale were led by a 10.2% increase for anhydrous milk fat, while skim milk powder rose 1% and butter milk powder fell 6.4%.

There were 127 bidders participating in the sale, with 73 winners after 10 rounds.

(BusinessDesk)