16 Nov 2011
FONTERRA DAIRY AUCTION PRICES IMPROVE 2012 OUTLOOK – KIERSEYUncategorized
IFA National Dairy Committee Chairman Kevin Kiersey said yesterday’s Fonterra Global Dairy Trade auction, covering trade periods to July 2012, had shown encouraging rallying signs with a 2.6% price uplift compared to the last auction earlier this month. The greatest gainers are milk protein concentrates prices, up 11%, and AMF (anhydrous milk fat, or butteroil) up 8%.
Mr Kiersey said that comparison with the same auction this time last year showed an overall average price 3% higher. He warned: “Industry commentators should hold their counsel and avoid second guessing too soon and too negatively market price trends for 2012.”
Comparing these latest results with those of the same auction this time last year, he said: “SMP average prices in the mid-November 2011 auction are 8.3% higher than those in the same auction a year ago, while WMP prices are 3.7% higher. Looking specifically at the prices struck for product to be traded in the May to July period, SMP prices struck in the November 2011 auction are 11% higher than in the 2010 auction, while WMP prices are 6.3% higher.”
“Skimmed and whole milk powders are the products traded in greatest quantities by far through the Fonterra Global Dairy Trade auction, accounting for approx 5,000t and 20,000t per auction respectively. Yesterday’s results are indication of firmness for protein prices in 2012,” he concluded.