WELLINGTON, June 6 (Reuters) - International milk prices rose for the first time in two months in the latest global auction, New Zealand’s Fonterra Cooperative Group, the world’s biggest dairy exporter, said on Wednesday.
Fonterra’s Global Dairy Trade-Trade Weighted Index, which covers a range of 30 products and contract periods on offer, rose 13.5 percent, with an average selling price of $2,899 per tonne.
It was the first rise in four auctions in the index at the fortnightly auctions, and the biggest single increase since September 2010.
Prices rose for most dairy products on offer, with the largest increase seen in anhydrous milk fat, which rose 24.4 percent. Skim and milk powder also posted hefty rises along with rennet casein.
The index, which hit a near four-year peak in March last year, has fallen 27.5 percent over the past year.
Full details of the auction are at: www.globaldairytrade.info
Fonterra holds two auctions a month, with the next one on June 19.
The co-operative last month cut its forecast payout for the just-ended 2011/12 season by around 4.5 percent to between NZ$6.45-NZ$6.55 a kg of milk solids. See
It has made an initial forecast for the new season of NZ$5.95 to NZ$6.05, made up of a milk price of NZ$5.50 a kilo of milk solids and an added dividend of between 45-55 NZ cents.
Fonterra is owned by about 10,500 farmers and controls around a third of the world’s dairy exports, generating more than 7 percent of New Zealand’s gross domestic product.
Dairy produce makes up more than a quarter of New Zealand’s NZ$48 billion annual export earnings, and the currency is often sensitive to movements in prices. (Reporting by Gyles Beckford)