Dairy auction price rise again

The whole milk price increased 24.2% to $US2,858 per tonne in last night’s globalDairy Trade auction.

That follows an increase of 25.8% last month.

Fonterra chairman Henry Van der Hayden said in an email to shareholders that this is a sign dairy prices are firming. Global supply is down and inventories are tight

 

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UPDATE: Interest.co.nz notes the acution included 2000 tonnes of Australian whole milk powder.

This entry was posted on Wednesday, September 2nd, 2009 at 9:10 am and is filed under business, Farming. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

3 Responses to Dairy auction price rise again

  1. gravedodger's avatar gravedodger says:
    02/09/2009 at 11:18 am

    What are the total tonnages at these auctions and as a % of the total trade

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  2. homepaddock's avatar homepaddock says:
    02/09/2009 at 11:38 am

    GD: I forgot to link to the globalDariy Trade site, I’ve now linked, and it shows the tonnage for each contract period.

    It totals 19,000 tonnes of NZ milk powder but I don’t know what that is as a % of the total.

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  3. Red Rosa's avatar Red Rosa says:
    02/09/2009 at 6:15 pm

    Good question about tonnages, but the globalDairy site should explain all this.

    Also, the tonnages in EU and US storage should be available somewhere on the Net. Apparently these are significant, but nothing like the mountains of 20 years ago.

    Those who criticized the auction system when WMP prices were going down, have been strangely silent now prices are going back up!

    Cautious optimism seems to be the order of the day at Fonterra, though the kiwi $ is still disturbingly high.

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