Fonterra's online trading platform globalDairyTrade is gearing up to double its original volume when it adds skim milk powder (SMP) to the mix next month – less than two years after it began.Early this morning, the platform's 20th monthly trading ev
Fonterra’s online trading platform globalDairyTrade is gearing up to double its original volume when it adds skim milk powder (SMP) to the mix next month – less than two years after it began.
Early this morning, the platform’s 20th monthly trading event concluded with the average price for whole milk powder (WMP) down 1.6% ($US53 per tonne) to $US3256 per tonne from the January event.
January was down an average of 7% after five months of spot price increases.
Anhydrous milk fat (AMF) dropped 7.9% ($US356 per tonne) to $US4183 per tonne.
Overall pricing decreased 2.4% across both commodities.
Platform manager Paul Graves told NBR the prices achieved this morning where were within the expected range.
“This comes of some big price increases at the beginning of the season,” he said.
Mr Graves said supply and demand factors were finally in balance.
“Supply concerns have eased a little.”
However, Mr Graves said dry conditions in parts of New Zealand and drought in Northland were being noted in reference to future supply.
During the March trading event, Fonterra will add skim milk powder to the platform, which would take the annual volume passing through globalDairyTrade to about 400,000 tonnes representing about 20% of New Zealand production.
Mr Graves said globalDairyTrade was becoming accepted in the marketplace and its prices a credible reference point.
When the platform was launched, Fonterra said it could also be opened up to other milk suppliers and Mr Graves said a number of spoken to about the possibility.
He said it was still early days and the finer points of how it could work for others had not been negotiated.
The next globalDairyTrade event will be held during the early hours of March 3, New Zealand time.
