Milkpowder price up 24pc in Fonterra auction

Robust bidding in Fonterra's monthly online auction of whole milkpowder early today lifted the average price paid by 24.2 percent to $US2858 a tonne.

The rise was nearly as high as last month's 26 percent lift at the globaldairytrade auction, meaning the price has jumped 50 percent in two months.

Industry executives have said that if the commodity price rises are sustained, they will counter the effects of the high New Zealand dollar exchange rate on this season's projected payout.

Today milkpowder from Fonterra's Australian operations was included in the auction, fetching prices slighter lower than powder shipping from NZ ports.

In the first contract period, for November delivery, the per-tonne prices set for regular powder were $US2865 (NZ) and $US2765 (AUST), while instant powder rose to $US2915 (NZ) and $US2800, and UHT powder hit $US2940 (NZ).

The average price for November delivery rose 24.6 percent to $US2872.

At the height of summer, December-February 2010, prices lifted 23.4 percent to $US2847/tonne, and for March to May, it rose 24.9 percent again to $US2861.

Fonterra started auctioning whole milk powder in July last year.

NZPA