Dairy prices have risen 4.5 per cent at Fonterra’s latest GlobalDairyTrade auction
The average price was up to $US3519 ($NZ4965) per metric tonne with the important whole milk powder price up 3.2 per cent to $US3423.
Traders had been expecting a price rise of between 3 and 5 per cent.
Low global dairy prices have been hurting farmers but the GDT index has been on an upward trend since March this year and the rise was the seventh in the last eight auctions.
Last month Fonterra said it reduced its forecast milk volume for the 2016-17 season in New Zealand.
“Tightening milk supplies in both New Zealand and Australia has put pressure on suppliers with some dairy companies struggling to meet contracted delivery times,” AgriHQ dairy analyst Susan Kilsby said.
“This has left a few buyers with low supplies on hand putting some urgency into the market.”
We need the export dollars more than we did a week ago. No matter how much Key, English and Bridges tell us not to worry because there is enough money to fix our problems, improving exports will be quite helpful.
– NZN via Yahoo!