Dairy prices rise – but so does the bloody dollar

Alf’s dairy farming readers will be cheered by news that prices have risen in Fonterra’s latest online global milk powder auction.

Values have been slipping since May but Tuesday night’s auction posted an increase of 24.98%.

The current price of $US2301 per tonne compares with $US1841 month.

It is however still less than half the value of $US4750 achieved at auction in March last year.

Ele at Homepaddock, as usual, was quickly on to this news and has a bit more to say on the matter with a post headed Phew – milk auction price up 25.8% (which is slightly at odds with the Radio NZ number).

She has a graph, too, for those who like to see how this thing is tracking.

For good measure (but a bit more sobering) she gives a pointer to Bernard Hickey’s observation that the rise in the value of the dollar will cancel out some of the gains from the better auction price.

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