Prices in the latest Global Dairy Trade auction have finally rebounded, recording a 4.0 per cent lift across the board in last night's event.
As the largest increase in six months, since a surprise 15 per cent spike on March 2, it will be very welcome news for farmers.
Whole milk powder - which has the biggest influence on Fonterra's farmgate milk price - rose 3.3 per cent to an average US$3691/MT, following a 1.5 per cent decline at the previous auction.
Meanwhile skim milk powder - Fonterra's second biggest reference product - rocketed up 7.3 per cent to an average US$3274/MT, a further gain from the 1.1 per cent lift last auction.
Butter firmed 3.7 per cent per cent to an average US$4948/MT, while cheddar followed close behind - up 3.6 per cent with an average US$4328/MT.