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Fonterra globalDairyTrade event reflects continuing market uncertainty
The May trading event for Fonterra’s internet-based sales platform, globalDairyTrade, has concluded with prices mixed within recent trading ranges. 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 $2,144 per tonne FAS New Zealand Port, 4.1% lower than the previous event in April. Prices ranged from $2,085 per tonne FAS to $2,220 per tonne FAS. 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 Fonterra global trade director portfolio optimisation, Nigel Kuzemko.
“Still, globalDairyTrade continues to achieve its goal of being an accepted reference point for global dairy prices, with this month’s trading event attracting strong international interest and a record number of participants.”
The next globalDairyTrade trading event will be held on 2 June 2009.
Source: Fonterra
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