Prices fall in globalDairyTrade event

The gDT-TWI index was down 13.7% after the latest globalDairyTrade trading event.

The trading manager, CRA International, advised that average prices across all contracts and contract periods were as follows:

Average price
US $ per tonne FAS
% change
Anhydrous Milk Fat
4,620
-14.1 %
Skim Milk Powder
3,067
-11.8 %
Whole Milk Powder
3,224
-14.8%


Paul Grave, globalDairyTrade Manager, said the result reflected supply increasing globally in response to what has been a very strong price signal over recent months. Concerns in the market about short term product availability, which to a large extent underpinned recent high prices, appear to have eased.

For full results see www.globalDairyTrade.info.

The next globalDairyTrade trading event will be held on 4 August 2010.


- ENDS -


For further information contact:
Fonterra Communications
Phone: +64 21 507 072

About the gDT-TWI (globalDairyTrade Trade Weighted Index)

The gDT-TWI is an index that shows the percentage change in the average price of a basket of products currently traded on globalDairyTrade – Whole Milk Powder, Skim Milk Powder, and Anhydrous Milk Fat.

The gDT-TWI takes the percentage changes in prices discovered in a globalDairyTrade event and weights them based on total international dairy product trade flows. The calculation for the index can be found in the historic data file that may be downloaded from http://www.globaldairytrade.info under the latest results tab.