17 Sep 2010

Dairy auction prices up 2%

2:01 pm on 17 September 2010

Dairy prices at Fonterra's latest online auction rose almost 2%.

The average selling price for all products rose 1.9%, to $US3663 per tonne.

Dairy prices have been volatile in recent months.

Prices jumped 17% at the last auction, a fortnight ago, but fell in the four months before that.

Whole milk powder rose 1.4% at the latest auction.

Last month, Fonterra left its forecast milk payout for the season unchanged at $6.90 - $7.10 per kg of milk solids, saying there were signs prices would improve later in the year.

Wednesday night's auction was the first mid-month sale following a decision by Fonterra to increase the auctions from once to twice per month.