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.
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