GLOBAL – Fonterra’s auction saw values lift across most categories, lifting the global dairy trade index 9.9 per cent, the fourth consecutive rise.
This continues a run of gains stretching back to August 18, with Butter, Skim and Whole milk powders all up by around 13 per cent.
This has returned the average weighted price to levels last seen in March.
AHDB Dairy, the UK levy board, described the auction as “positive” and hoped it would continue.
The board said Fonterra’s revised milk collection forecast, recently moved five per cent lower, have been “encouraging”.
“If this is consistent with other NZ processors, with Fonterra accounting for around 80 per cent of NZ processing, it could see the country’s milk production fall by just over 1bn litres,” said an AHDB spokesperson.
“Hopefully this positivity will continue and venture further into the wholesale markets, providing support to farmgate prices in the process.”
Yesterday's trade saw only Butter drop, which slipped 2.3 per cent to a value of NZ$3,763.
TheCattleSite News Desk