International dairy prices improved slightly at this morning's Global Dairy Trade auction, the GDT price index gaining by 1.4 per cent since the last sale early this month.
Wholemilk powder prices, which have the greatest bearing on Fonterra's farmgate milk price, gained by 2.9 per cent to US$2760 a tonne.
Today's gain partly offsets the previous sale's 3.0 per cent decline in the GDT index, which occurred after a sharp spike higher over August and September.
The futures market had pointed to prices stabilising at this morning's sale after Fonterra said it would reduce the amount of product available for sale at the auction because its Waikato milk volumes for October were down 10 percent from the same time last year due to a wetter-than-usual spring.
In other so called reference products for Fonterra, skim milk powder fell by 0.3 per cent to an average price of US$2,204 a tonne, butter milk powder firmed by 0.2 per cent to US$2,583 a tonne, butter rose by 2.6 per cent to US$3,984/tonne and anhydrous milk fat gained by 1.1 per cent to US$5,007/tonne.