GlobalDairyTrade event reflects greater market balance

globalDairyTrade, Fonterra’s internet-based sales platform, concluded its February trading event this morning (NZT) with the average price for Whole Milk Powder down 1.6%, or US$53 per tonne, from the January event.

The trading manager, CRA International, advised Fonterra that the average price achieved across all contracts and contract periods for Whole Milk Powder (WMP) was US$3,256 per tonne FAS. Prices ranged from US$3,175 per tonne FAS to US$3,355 per tonne FAS.

Paul Grave, globalDairyTrade Manager, said the result was within the range of price movements expected in the current market environment and signalled that the market was in reasonable balance.

“It is encouraging to see that prices remain relatively stable in a range that is high by historic standards,” Mr Grave said.

“This result is positive given that over the last month dairy prices have been under pressure in Europe and the US.”

For Anhydrous Milk Fat (AMF), the average price achieved across all contracts and contract periods was US$4,183 per tonne FAS. This was US$356 per tonne, or 7.9%, lower than the January event.

Overall pricing decreased 2.4% across both AMF and WMP.

The next globalDairyTrade trading event will be held on March 2, 2010 and will include sales of Skim Milk Powder See www.globalDairyTrade.info for more details.