Prices firm up in Fonterra online auction

Prices were up over 13 per cent in Fonterra's latest monthly internet whole milk powder auction.

GlobalDairyTrade, Fonterra's internet-based sales platform, concluded its November trading event this morning, with the average price up by 13.7 per cent over October's trading.

The trading manager, CRA International, advised Fonterra that the average price achieved across all contracts for Whole Milk Powder (WMP) was US$3,437 per tonne.

This was US$415 per tonne higher than the October event. Prices ranged from US$3,270 per tonne to US$3,715.

Nigel Kuzemko, Director Commercial & Strategy, Fonterra Trade & Operations, said demand had been strengthening, along with pricing, in recent months and there was a more positive sentiment in the market.

But the size of the lift in pricing this month showed customers demonstrating some urgency in refilling their supply chains.

"This is a reflection of the prices that buyers are prepared to pay on the day to secure product in these contract periods. And we do have a tight supply situation for most products."

- NZHERALD STAFF