Average prices of dairy products rose for the first time since Fonterra's online auction in early June, led by increases in whole and skim milk powder.
The GDT-TWI Price Index rose 1.7 per cent overnight, according to the latest results posted on the globalDairyTrade auction website. The average winning price rose to US$3,540 a metric tonne, climbing from the lowest level in more than a year in the previous auction two weeks ago.
Commodity prices have recovered somewhat since sinking to a 12-month low at the start of October, based on the Thomson Reuters/Jefferies CRB Commodity Index. Hopes that European leaders can find agreement on how to tackle the region's debt crisis have soothed concerns global growth will be derailed, though China's economy slowed to a 9.1 per cent pace in the third quarter, the weakest in two years.
Whole milk powder rose 5.7 per cent to US$3,503 a tonne in the latest sale and skim milk powder gained 3 per cent to US$3,292. Anhydrous milk fat fell 1.7 per cent to US$3,645 a tonne and milk protein concentrate fell 6.4 per cent to US$6,295 a tonne.
Rennet casein tumbled 14 per cent to US$7,040 a tonne. Butter milk powder fell 1.9 per cent to US$3,019 a tonne and cheddar fell 8.4 per cent to US$3,497 a tonne.
