Prices up 4.5pc in overnight dairy auction

The average price of milk powder rose in Fonterra's latest online auction, reaching the highest level since early March, led by gains in skim milk powder.

The average price of milk powder rose 4.5 per cent to US$4,306 per metric tonne, according to results posted on the globalDairyTrade auction website. That follows a 1.1 per cent 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.

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

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