Fonterra announced the average price for whole milk powder at its latest internet auction fell 8.2% from January to US$1,851 per tonne. The average price at the internet auctions has fallen 58% from July, when the auctions began. "Prices should be very attractive to buyers at these levels, and they are not sustainable for global suppliers," Fonterra's Managing Director of Global Trade Kelvin Wickham said. "Prices remain under pressure due to weak demand. However supply is slowing, inventories are running down and we believe we are in the trough of the market." The globalDairy Trade auctions, held once a month, have been criticised for leading price declines for dairy commodities. Fonterra has called the criticisms "absolute nonesense."
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