The average price for whole milk powder (WMP) went down 7% to US$3,309 per tonne in Fonterra’s first globalDairy Trade auction for the year.
That wasn’t unexpected after sharp increases in the past few months. It’s still above the long term average and the decrease will be regarded as a correction rather than anything to worry about.
Fonterra chair Sir Henry Van der Heyden said in a newsletter to shareholders that the movements are in line with the market coming more into balance.
While the price for WMP was down the average price for Anhydrous Milk Fat (AMF) was up 4% to US$4,539 per tonne.