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Fonterra auction price rises at last

Rural News
Fonterra auction price rises at last

International dairy prices rose in Fonterra's latest monthly internet auction after a lengthy period of decline reports the ODT. In the latest auction early today, the average selling price for whole milkpowder rose 16.6 percent from a month earlier to $US2158 ($NZ4415) per tonne, Fonterra said. Prices ranged from $US2100 per tonne to $US2280 per tonne. Fonterra managing director of global trade Kelvin Wickham said the result reflected what customers believed was a fair price in today's uncertain market. "This latest result is another indicator of what are seeing in the market. We expect prices to move around in this transition period as supply and demand rebalances." In February the average selling price for whole milkpowder had fallen 8.2 percent to $US1851, a level Mr Wickham said at the time was "not sustainable for global suppliers". The internet auction prices fell 9.3 percent in January's auction and 14 percent in December. In its morning briefing today, ANZ heralded the latest auction price with the comment "finally, some positive news on the local front", saying the increase looked promising. But last night's auction could be an early indication that perhaps the bottom of dairy prices has been found."

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