The overall average price for whole milk powder (WMP) through to January next year dropped 1.2 percent in Fonterra's latest internet auction today, compared with last month's prices.The average price across all contracts and contract periods for WMP was $
The overall average price for whole milk powder (WMP) through to January next year dropped 1.2 percent in Fonterra's latest internet auction today, compared with last month's prices.
The average price across all contracts and contract periods for WMP was $US3932/tonne ($NZ5463/tonne) or $US37 lower than in April.
On contracts for July delivery, WMP dropped 1.1 percent to $US4027/tonne, down from last month's comparative figure of $US4092 a tonne, which was the highest for a short-term contract since July 2008.
For all products over all contracts, the contraction at today's auction was much smaller, only 0.8 percent, to an average of $US3981 ($NZ5530).
Last month's auction caused surprise with sharp rises of more than 20 percent in WMP, skim milk powder (SMP) and anhydrous milk fat (AMF), and was followed by Fonterra promising farmers an extra 40c/kg of milksolids in the payout for the current season just ending. Farmers are expecting a payout of $6.10 -- Fonterra's second highest and up 17 percent on last year's $5.20/kg.
Fonterra's global dairy trade manager, Paul Grave, said today the outlook for milk powder prices remained positive with the latest result reflecting both strong demand and constrained supply in the short term.
For AMF -- an industrial butter oil -- the average price across all contracts and contract periods was $US5020/tonne, up $US193/tonne, or 4.4 percent on the April figure.
For SMP the average price across all contracts and contract periods was $US3612/tonne, down $US60/tonne, or 1.4 percent on April.
Fonterra also today launched a trade-weighted index, showing prices down 0.8 percent.
The next internet auction will be held on June 1.
