Fonterra’s Global Dairy Trade-Trade Weighted Index, which covers a range of 30 products and contract periods on offer, rose 0.7 percent, with an average selling price of $3,348 per ton. This follows a 1.1 percent rise from the previous auction. Prices have risen in six of the previous seven auctions.
Dairy prices, which peaked in October 2007, have gained more than 23 percent since the middle of the year, in part because of the drought in the United States, the supply and demand have become better aligned.
At the latest auction, there were price gains for cheddar and anhydrous milk fat, while prices for whole milk powder, skim milk powder and milk protein concentrate fell.
There were 147 winning bidders over 11 rounds. There were 186 participating bidders out of a total number of qualified bidders of 726.
The next auction will be held on December 5, 2012.
Source: ADPI
