Milk powder prices took their second consecutive sizeable jump in a month, rising 24.2% at Fonterra's globalDairyTrade internet auction on Tuesday night.
This followed a 25.8% increase for the August auction and a 3% decline in July, but Fonterra was yesterday reluctant to say the demand meant a return to sustainable growth.
Fonterra global trade managing director Kelvin Wickham said this week's lift was higher than expected.
"However, we anticipated whole milk powder prices would lead the recovery because of low global inventories and firming demand."
This month's demand indicated customers had confidence to fill depleted supply chains, but he was loath to say a recovery was under way.
The average price for whole milk powder across all contracts and contract periods was $4396 a tonne, $856 a tonne higher than August.
Prices ranged from $4253 to $4523, with contracts through to the first quarter of next year $4401 a tonne, indicating some stability.
Mr Wickham confirmed that anhydrous milk fat would be offered on the globalDairyTrade auction platform from the November sale.
The improved prices prompted praise from Federated Farmers, a long-term critic of globalDairyTrade, with dairy section chairman Lachlan McKenzie saying better prices were welcomed.
Meanwhile, Fonterra has said there is no timetable or date set for the release of details on its new capital restructure package.
The New Zealand Herald reported yesterday those details could be released in the next two weeks, but a Fonterra spokesman said there was no such timetable.
