globalDairyTrade event reflects greater market balance
globalDairyTrade, Fonterra’s internet-based sales platform, concluded its October trading event this morning (NZT) with average prices for Whole Milk Powder up 5.7%.
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$3,022 per tonne FAS. This was US$164 per tonne higher than the September event. Prices ranged from US$2,825 per tonne FAS to US$3,095 per tonne FAS.
Kelvin Wickham, managing director, Fonterra Global Trade, said it was expected prices would need to consolidate after the recent sharp rises.
“We’ve seen a rebalancing in the market and we see market fundamentals supporting prices around their current levels,” Mr Wickham said.
“In particular there’s been keener demand from customers and a tighter supply situation for most products.”
Mr Wickham said although it was good to see prices firmer there remained a level of uncertainty given many economies were only beginning to recover from recession.
“With prices at these levels we hope to see reduced subsidies and intervention by overseas governments.”
The next globalDairyTrade trading event will be held on November 3 2009. See www.globalDairyTrade.info for more details.
