New Zealand dairy giant Fonterra has reported a fall in milk-powder prices in its latest Internet auction as concerns over supplies started to ease.
The price of skim milk powder fell 11.8%, while the price of whole milk powder dropped 14.8% in the latest globalDairyTrade auction. The price of anhydrous milk fat fell 14.1%.
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Paul Grave, globalDairyTrade manager, said the results reflected an increase in global supplies in response to “a very strong price signal” over recent months.
Concerns in the market about short-term product availability, which, to a large extent underpinned recent high prices, Grave said, appear to have eased.
