globalDairyTrade event reflects firm market conditions
globalDairyTrade, Fonterra’s internet-based sales platform, concluded its December trading event this morning (NZT) with the average price for Whole Milk Powder up 3.6%.
globalDairyTrade, Fonterra’s internet-based sales platform, concluded its December trading event this morning (NZT) with the average price for Whole Milk Powder up 3.6%.
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$3,560 per tonne FAS. This was US$123 per tonne higher than the November event. Prices ranged from US$3,370 per tonne FAS to US$3,760 per tonne FAS.
Paul Grave, globalDairyTrade manager, said the market continued to be underpinned by tight supply conditions.
“However, the economic outlook is still relatively fragile. A sustained recovery is reliant on strong consumer demand,” Mr Grave said.
“WMP prices have risen by 95% since July. While the outlook remains positive, we expect more volatility as a result of supply and demand responses to this large price increase.”
For Anhydrous Milk Fat (AMF), the average price achieved across all contracts and contract periods was US$4,349 per tonne FAS. Mr Grave said AMF pricing had come off slightly from historic highs.
Overall pricing increased 1.9% across both AMF and WMP.
The next globalDairyTrade trading event will be held on January 5, 2010. See www.globalDairyTrade.info for more details.
About Fonterra
Fonterra is a global leader in dairy nutrition – the preferred supplier of dairy ingredients to many of the world’s leading food companies. Fonterra is also a market leader with our own consumer dairy brands in Australia/New Zealand, Asia/Africa, Middle East and Latin America.
The farmer-owned New Zealand co-operative is the largest processor of milk in the world, producing more than two million tonnes of dairy ingredients, value added dairy ingredients, specialty ingredients and consumer products every year. Drawing on generations of dairy expertise, Fonterra is one of the largest investors in dairy based research and innovation in the world. Our 16,000 staff work across the dairy spectrum from advising farmers on sustainable farming and milk production, to ensuring we live up to exacting quality standards and delivering every day on our customer promise in more than 100 markets around the world.
