Whole milk powder auction prices rose for the first time in six week, according to Bloomberg, citing figures from Fonterra Cooperative Group Ltd., the world’s largest dairy exporter.
Powder for January delivery gained 0.9%t from two weeks earlier, according to a trade-weighted price index calculated by the company after its latest GlobalDairyTrade auction. The average price rose to $3,516 a ton, and is the highest for the spot contract since Oct. 6.
Fonterra accounts for about 40% of the global trade in butter, milk powder and cheese, selling $12 billion of product a year in 140 countries.
In September, the company raised its farmer payout forecast citing rising global prices.
Chief executive officer Andrew Ferrier had said earlier there are signs that international dairy supply and demand are “moving more in balance at prevailing prices.”
Fonterra sells whole and skim milk powder and dried milk fat at its fortnightly Internet-based auctions. It offers one- month contracts with delivery starting two months after the sale, and two three-month contracts with delivery starting three and six months later.
Whole milk powder for delivery from February through April rose 0.9%, Fonterra said.
Powder for shipment from May through July slumped 6.7%. Across all contracts prices were unchanged.
The winning first-contract price for regular New Zealand whole milk powder, which is the reference point for NZX Ltd.’s futures contract, rose to $3,490. The November futures contract settled yesterday at $3,430.
–Source: Bloomberg
