Global dairy prices continue to drop, supply slowing: Fonterra
The February trading event for Fonterra’s internet-based sales platform, globalDairyTrade, has been completed with the results reflecting the pressure global commodity markets are under due to falling 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$1,851 per tonne FAS New Zealand Port, 8.2 per cent lower than for the previous trading event in January.
“Prices should be very attractive to buyers at these levels, and they are not sustainable for global suppliers,” said Kelvin Wickham, Fonterra’s Managing Director of Global Trade. “Prices remain under pressure due to weak demand. However supply is slowing, inventories are running down and we believe we are in the trough of the market.”