World dairy prices were up again in the latest dairy auction, lifting 1.1% from two weeks ago. It is the third straight rise in the GlobalDairyTrade auction of dairy products.Prices for whole milk powder, which typically accounts for more than half the product sold, rose 2.8% to S$3,288 per ton, reaching a two-month high.
Powder for March delivery rose 2.4 percent, according to a trade-weighted index on the companyâ€™s GlobalDairyTrade website. The near-term contract for New Zealand product rose to $3,261 a metric ton, the highest price since Nov. 20.
Fonterra in December raised its forecast payment to farmers, saying it expects higher global dairy prices in the first half of 2013. While milk prices fell toward year-end as new season output from New Zealand and other southern hemisphere producers entered the market, they are 28 percent higher than in mid-July after the worst U.S. drought in 56 years curbed supply.
Whole-milk powder for April delivery rose 3.3% while prices across all five product contracts out to July rose 2.8 percent, Fonterra said.
In other auctions, prices for March delivery of milk fat and casein also increased. Butter milk powder, cheddar and milk protein concentrate fell while skim milk powder was unchanged. Lactose wasnâ€™t offered in the sale.
The total volume sold at the January 16th auctionÂ was 40,418 tons across 12 rounds of bidding. The auction involvedÂ 202 participants out of 748 qualifying bidders, with 144 winning bids.