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Source: ONE News -
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The price of whole milk powder rose in Fonterra's latest online auction for the third consecutive month.
Prices rose 5.7% to $US3,022 a tonne in the October auction which concluded early on Wednesday morning, with prices ranging from $US2,825 - $US3,095 a tonne.
The rise was more subdued than the steep rises of 25% in August and 24.2% September.
Fonterra's managing director for global trade Kelvin Wickham says there has been more demand from customers and a tighter supply for most products, though it was expected prices would need to consolidate after the recent sharp rises.
"We've seen a rebalancing in the market and we see market fundamentals supporting prices around their current levels," he says.
Wickham says although it was good to see prices firm up, many economies were only beginning to recover from recession and there was still uncertainty in the market.
"With prices at these levels we hope to see reduced subsidies and intervention by overseas governments," he says.
According to ANZ's Commodity price index, New Zealand's dairy prices jumped 17% in August, leading an overall 6.8% rise in the index.
Fonterra in September said productivity in the domestic milk sector climbed 7% to reach record levels, and it expects milk flows to keep growing.
Fonterra's next online auction will take place on November
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