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Source: ONE News -
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Robust bidding in Fonterra's monthly online auction of whole milkpowder has lifted the average price paid by 24.2% to $US2858/tonne.
The rise was nearly as high as last month's 26% lift at the globaldairytrade auction, meaning the price has jumped 50% 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.
Fonterra says the lift is higher than expected but cautiously adds it remains to be seen whether the demand continues.
The New Zealand dollar moved up slightly following the announcement.
Following the August auction the kiwi shot up more than a cent.
Currency analysts say a big sell off on global markets offset the dairy spike, however it is possible the dollar will make up more ground when markets settle down.
Fonterra started auctioning whole milk powder in July last year.
