Prices lift sharply in globalDairyTrade event

globalDairyTrade, Fonterra’s internet-based sales platform, concluded its April trading event this morning (NZT) with the average price for Whole Milk Powder up 21%.

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$3,969 per tonne FAS. This was US$688 per tonne higher than the March event. Prices ranged from US$3,755 per tonne FAS to US$4,230 per tonne FAS.

For Anhydrous Milk Fat (AMF) the average price achieved across all contracts and contract periods was US$4,827 per tonne FAS. This was US$868 per tonne, or 21.9%, higher than the March event.

For Skim Milk Powder (SMP) the average price achieved across all contracts and contract periods was US$3672 per tonne. This was US$745 per tonne, or 25.5%, higher than the March event.

Paul Grave, globalDairyTrade Manager, said demand across all products was very strong. Prices reflected tightening supply as the Australasian production season draws to a close.

Overall pricing increased 23.2% across WMP, SMP, and AMF.

The next globalDairyTrade trading event will be held on 4 May 2010. See www.globalDairyTrade.info for more details.