Prices at Fonterra’s online monthly milk powder auction have fallen overall, the company has said, despite a rise in the price of contracts with short-term delivery.
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The May trading event for Fonterra’s internet-based sales platform suggested the market remains cautious as the global recession continues to weigh on consumer demand.
The trading manager, CRA International, advised Fonterra that the average price achieved across all products and contract periods for Whole Milk Powder (WMP) was US$2,144 per tonne, 4.1% lower than the previous event in April. Prices ranged from US$2,085 per tonne to US$2,220 per tonne.
However, prices rose for contracts with short-term delivery by almost 2%.
“Today’s result confirms our expectation that dairy markets will be characterised by increased uncertainty in the future and we expect prices will continue to cycle around current levels,” said Nigel Kuzemko, director, portfolio optimisation, Fonterra Global Trade yesterday (13 May).
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