The increase in Fonterra's forecast milk payout last week appears justified, after prices in its latest internet auction lifted an average 2.4% yesterday.
This follows a 1.6% increase earlier this month, following almost stagnant prices in November sales.
Fonterra last week raised its forecast milk price for this season by 30c a kg of milk solids to $6.90 a kg of milk solids.
When the distributable profit, or dividend is added, Fonterra shareholder-suppliers will receive between $7.30 kg/ms and $7.40 kg/ms before company retentions, one of the company's highest payouts.
Yesterday's result saw anhydrous milk fat over the three contract periods rise 0.7%, butter milk powder fall 0.7%, skim milk powder rise 2.5% and whole milk powder lift 2.6%.
The price for all products over all contract periods rose 2.4% with an average successful bidding price of $4920.
