3 Jul 2013

International milk prices rise again

12:57 pm on 3 July 2013

International milk prices have risen again while volumes have jumped at Fonterra's fortnightly auction overnight.

The Global Dairy Trade, which covers 30 products, rose 0.7%, with an average selling price of $US4643 per tonne.

The rise followed a jump of 1.1% at the previous sale.

A total of 38,890 tonnes were sold, 64% more than the previous auction.

Prices for whole milk powder rose 0.1%. Rennet casein surged nearly 8% and butter fell nearly 6%.

The New Zealand dollar rose briefly after the results before falling.

BNZ economist Doug Steel said the rise may not seem much, but dairy prices are now almost 70% higher than they were a year ago.

He does not think they can hold up where they are, but said they will still remain strong.

Fonterra is forecasting a milk price of $7 per kg of milk solids for the current season, $1.20 per kg above the past season.