A big jump up in dairy prices has boosted famers’ confidence, rural economies and the vehicle industry.
Prices of dairy products posted their biggest gain since early April in Fonterra Cooperative Group’s latest GlobalDairyTrade auction, led by a jump in whole milk powder, the biggest product by volume.
The boost to farmers’ confidence is expected to be reflected in continuing strong vehicle and equipment sales.
The GDT-TWI Price Index rose 4.9% compared to the last sale two weeks ago. The average winning price rose to US$4828 a tonne, the biggest gain since April 16, from US$4643 a tonne two weeks ago.
Global commodity prices have recovered from their lows of late June.
Whole milk powder, the biggest product by volume, gained 7.7% to US$5058 a tonne, the highest since April 16, and skim milk powder rose 3.3%to US$4566 a tonne..
