Whole Milk Powder, Anhydrous Milkfat Prices Fall In Fonterra’s Internet Auction; Skim Milk Powder To Be Included Next Month
Wellington, New Zealand—Average prices for both whole milk powder and anhydrous milkfat declined in Fonterra’s monthly Internet-based auction, which was conducted this week.
The trading manager, CRA International, advised Fonterra that the average price achieved across all contracts and contract periods for whole milk powder was US$3,256 per ton FAS, down 1.6 percent, or $53 per ton, from the January auction. Prices ranged from US$3,175 per ton to US$3,355 per ton FAS.
For anhydrous milkfat, the average price achieved across all contracts and contract periods was US$4,183 per ton FAS, which was 7.9 percent, or $356 per ton, lower than the January event.
Overall pricing declined 2.4 percent across both whole milk powder and anhydrous milkfat.
Paul Grave, manager of globalDairyTrade, Fonterra’s Internet-based sales platform, said this week’s results were within the range of price movements expected in the current market environment and signaled that the market was in reasonable balance.
“It is encouraging to see that prices remain relatively stable in a range that is high by historic standards,” Grave said. “This result is positive given that over the last month dairy prices have been under pressure in Europe and the US.”
The next globalDairyTrade online trading event will be held on March 2, and will, for the first time, include sales of skim milk powder. UHT, low heat, medium heat and high heat specifications of skim milk powder will be offered.
The forecast total offer quantity for New Zealand origin skim milk powder for the 12 months ending in February, 2011, is 118,000 metric tons, or about 260 million pounds.
Fonterra anticipates offering 7,500 metric tons of skim milk powder during its March auction, smaller quantities in April and May, more than 10,000 metric tons in June, 15,000 metric tons each in July, August and September, then declining volumes until reaching 5,000 tons in February 2011. Forecasts are updated monthly prior to each trading event.
February 19 is the last day for skim milk powder customers to become qualified bidders for the March 2 event. For more information, visit www.globaldairytrade.info.
