Dairy product prices have risen at Fonterra's GlobalDairyTrade auction, as whole milk powder increased on the outlook for reduced supply from the world's top dairy exporter.
The GDT price index rose 2.2 per cent from the previous auction two weeks ago and the average price to $US3124 ($NZ4374). Some 25,400 tonnes of product was sold, down from 29,592 tonnes two weeks ago.
Whole milk powder rallied 4.2 per cent to $US2886 a tonne.
Fonterra expects to collect 3 per cent less milk from its New Zealand suppliers this season than it did in the prior season as dry weather stunts grass growth and lowers milk production.
Auckland-based Fonterra revised its forecast for its New Zealand milk collection for the current 2017/18 season to 1480 million kilograms of milk solids, down 3 per cent from the 1525 million kgMS it collected in the 2016/17 season, it said.
In December it had forecast milk collection would be in line with the previous season
At the latest GDT auction, skim milk powder gained 1.6 per cent to $US1699 a tonne, while butter rose 0.6 per cent to $US4501 a tonne.
Meanwhile, butter milk powder dropped 7.3 per cent to $US1866 a tonne, while cheddar declined 2.1 per cent to $US3317 a tonne.
Rennet casein fell 1.1 per cent to $US4419 a tonne, while anhydrous milk fat slipped 0.2 per cent to $US6405 a tonne.
No prices were available for lactose.
There were 112 winning bidders out of 158 participating at the 16-round auction. The number of qualified bidders rose to 516, up from 509 at the previous auction.