Prices on Fonterra’s globalDairyTrade auction are up, rising 16.9% to an average of US$3562 per tonne at the latest trading event.
After several months of decline, prices were up across all commodities.
Whole Milk Powder led the way, rising nearly 19% across all contracts, while Skim Milk Powder and Anhydrous Milk Fat also performed strongly.
globalDairyTrade manager Paul Grave says the increase is a sign the market is firming.
“16.9 per cent rise overall, we had a record number of bidders, 151."
Just over US$100m of product in just over two hours – that’s a positive signal for the future market tone."
The next auction is in two weeks’ time on September 15th, Mr Grave says the greater frequency will give an even clearer picture of market direction.
"Of course, we’re trading twice a month now so we’ll have more visibility into the market, and be able to time our pricing a lot better."
Fonterra is still in discussions with other sellers about joining the global dairy platform.
It hopes to have some on board in 2011.
