Fonterra's final monthly auction on its online trading platform pulled in record revenue of $240 million overnight.While trading numbers were softer compared with last month's globaldairytrade auction, manager Paul Grave said the result was inline with ex
Fonterra’s final monthly auction on its online trading platform pulled in record revenue of $240 million overnight.
While trading numbers were softer compared with last month’s globaldairytrade auction, manager Paul Grave said the result was inline with expectations.
Whole milk powder prices dipped 7.7% to $US2974 a tonne on average. Similarly, skim milk powder was down 8.9% to $US2770 and anhydrous milk fat dropped 7.6% to $US4302.
Mr Grave said the market was “going through a rough patch” which based more on demand compared with the supply issues that led to volatility in previous months.
“The market is attempting to find a new equilibrium point,” Mr Grave said.
Next month globaldairytrade will switch to fortnightly trading events, which Mr Grave said would help speed up that process.
Fortnightly auctions would also likely lead to softer price adjustments, sending a more regular price signal to the market.
