After five months of price increases, Fonterra's online whole milk powder auction system saw a drop early this morning.
The average price for whole milk powder (WMP) on the internet-based sales platform globalDairyTrade dropped an average of 7% at the en
After five months of price increases, Fonterra’s online whole milk powder auction system saw a drop early this morning.
The average price for whole milk powder (WMP) on the internet-based sales platform globalDairyTrade dropped an average of 7% at the end of today’s trading event.
The average price achieved across all contract and contract periods for WMP was $US3309 per tonne - $US251 lower than the December event.
Prices ranged from $US3230 per tonne to $US3555 per tonne.
globalDairyTrade manager Paul Grave said the reduction in prices represented a minor correction after five months of increases totalling 95%.
“This is one signal that the markets are now more closely in balance,” he said.
“The result is within the range of price movements we would expect to see in the current market environment.”
Mr Grave said consumer demand was returning and global supply remained tight.
Also presented on the platform was anhydrous milk fat (AMF) which produced an average price increase of 4% across all contracts and contract periods to $US4539 per tonne.
Overall pricing decreased 5.5% across both AMF and WMP.
The next globalDairyTrade event will be held during the early hours of February 3, New Zealand time.
