17 Nov 2010

Fonterra auction prices flat

12:29 pm on 17 November 2010

Dairy prices remain flat following Fonterra's latest online fortnightly auction.

The company says the average selling price for all products fell 0.1% to $US3522 per tonne.

Whole milk powder prices fell 1.4% to $US3447 and anhydrous milk fat prices also declined.

But prices for butter milk powder rose 3.6% and skim milk powder rose more than 2%.

BNZ economist, Doug Steel says flat dairy prices are good news. He says the relatively stability of prices is welcome after a period of sharp gyrations in prices.

Last month, Fonterra lifted the bottom end of its forecast milk payout by 10 cents, to between $7 - $7.10 per kg of milk solids, saying demand, particularly from Asia, is expected to remain robust.