Global dairy prices showing signs of recovery: Fonterra
The March trading event for Fonterra’s internet-based sales platform, globalDairyTrade, concluded yesterday morning, with prices rising as a result of stronger 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$2,158 per tonne FAS New Zealand Port. This was 16.6 per cent higher than for the previous trading event in February. Prices ranged from US$2,100 per tonne FAS to US$2,280 per tonne FAS.
Fonterra expects the market has now entered into a transition period, after dairy prices plummeted last year as global economic woes restricted demand.
“The globalDairyTrade result reflects what customers believe is a fair price in today’s uncertain market,” said Kelvin Wickham, Fonterra’s Managing Director of Global Trade. “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.”
The next globalDairyTrade trading event will be held on 1 April 2009.