Dairy prices recover at auction
Dairy prices have gained 3.6 percent at Fonterra's GlobalDairyTrade auction halting a run of three consecutive declines.
The average price was up to US$2419 ($NZ3674) per metric tonne from US$2345 at the previous auction two weeks ago.
The amount of product sold was 28,158 tonnes, down from 30,044 tonnes on October 6.
Whole milk powder, Fonterra's largest commodity, was up 5.3 percent to US$2,260.
The AgriHQ 2015-16 Farmgate Milk Price gained 21 cents to $4.48 per kilogram milksolids. This is comparable with Fonterra's current 2015-16 milk price forecast of $4.60/kgMS.
"Whilst we have seen a solid lift in prices at this auction, market fundamentals still remain weak due to the sheer volume of milk that is being produced across the globe," said AgriHQ dairy analyst Susan Kilsby.
"Therefore any recovery in prices is likely to occur slowly."
Butter climbed 5.7 percent, while skim milk powder, anhydrous milk fat and lactose also rose.
Cheddar, rennet casein and butter milk powder fell.
The New Zealand dollar last traded at 66.75 US cents at about 11:22am in New York, compared with 65.84 US cents at 5pm in Wellington yesterday.