The trading manager, CRA International, has advised Fonterra that the average price achieved across all products and contract periods for Whole Milk Powder was US$1,851 per ton FAS New Zealand Port.
This was 8.2% lower than for the previous trading event in January. Prices ranged from $1,810 per ton FAS to $1,935 per ton FAS.
“Prices should be very attractive to buyers at these levels, and they’re not sustainable for global suppliers,” said Fonterra MD of Global Trade, Kelvin Wickham. “Prices remain under pressure due to weak demand. However, supply is slowing, inventories are running down and we believe we’re in the trough of the market.”
The next globalDairyTrade trading event will be held on 3 March 2009.
globalDairyTrade is an internet-based electronic trading platform for cross-border trade in commodity dairy products. It offers Fonterra’s customers and supply partners improved price transparency, forward price information, and enhanced-price risk management. The simple trading process is conducted by an independent third party, CRA International Inc.
FAS (Free alongside ship) is an international commercial term that signifies that the exporter pays for transportation of the goods to the port of shipment, at which time title (ownership and risk) passes to the buyer. The buyer pays loading costs, freight, insurance, unloading costs and transportation from the port of destination to its factory.
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