Dairy product prices rose in the latest overnight GlobalDairyTrade auction, as gains in the price of butter and cheddar outweighed declines in the price of anhydrous milk fat, whole milk powder and rennet casein.
The GDT average winning price rose 1.1 per cent to US$3,374, from US$3,366 at the previous auction two weeks ago. Some 22,094 tonnes of product was sold, down from 22,957 tonnes two weeks ago.
After the latest GDT auction, the AgriHQ Seasonal Farmgate Milk Price for the 2014-15 season has increased by 5 cents per kilogram milksolids to $4.75/kgMS. This is comparable with Fonterra's $4.70/kgMS forecast which the company reconfirmed last week.
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"The small increase in the milk price forecast was brought about by a slightly stronger NZX Dairy Futures market, which improved the price outlook for the remainder of the season," AgriHQ dairy analyst Susan Kilsby said in a note. "Milk intakes have not fallen quite as quickly as previously anticipated and Fonterra has replaced some of the product that was earlier removed from GDT.