Prices nudge lower in Fonterra milk powder auction for May

Fonterra said prices nudged around 0.8% lower in its monthly internet auction of milk powder, consolidating after several months of sharp rises. See the full Fonterra release below:

Following the May trading event on globalDairyTrade, Fonterra’s internet-based sales platform, the gDT-TWI index was down 0.8%. Paul Grave, globalDairyTrade Manager, said the outlook remained positive. The result reflected both strong demand and constrained supply in the short term. The trading manager, CRA International, advised Fonterra that the average price achieved this morning (NZT) across all contracts and contract periods for Whole Milk Powder (WMP) was US$3,932 per tonne FAS. This was US$37 per tonne, or 1.2%, lower than the April event. For Anhydrous Milk Fat (AMF) the average price achieved across all contracts and contract periods was US$5,020 per tonne FAS. This was US$193 per tonne, or 4.4%, higher than the April event. For Skim Milk Powder (SMP) the average price achieved across all contracts and contract periods was US$3,612 per tonne. This was US$60 per tonne, or 1.4%, lower than the April event.