A positive result from last night’s Global Dairy Trade Auction was “nice to wake up to” says Fonterra’s managing director for co-operative affairs, Mike Cronin.
Event 262 of Global Dairy Trade closed Tuesday with the overall index 1.9% higher compared to the previous sale on June 2. This is largest gain since the beginning of 2020.
“We call that a strong result. This is our last [auction] for our financial year 2020 delivery,” Cronin told the Country’s Jamie Mackay.
“I guess we’re showing that demand for dairy’s pretty resilient at the moment. We’re certainly in a period where prices are stable [but] the trick question is how long is that going to last.”
Whole milk powder prices, which have the greatest bearing on Fonterra’s farmgate milk price, were up 2.2 per cent to US$2829/tonne.
Skim milk powder – the second biggest “reference” product for Fonterra, was up 3.1 per cent to an average US$2609 /tonne.
