Thursday, January 7, 2010

Fonterra Upbeat

International demand outside China for dairy product is showing signs of strengthening and a dip in Fonterra's latest global internet auction price is not a concern, analysts say.

Fonterra is upbeat for the first time after months of warning about international market fragility.

Fonterra global dairy trade manager Paul Grave said even with yesterday's 7 per cent fall in average whole milkpowder auction prices, prices were "very high by traditional standards". "Historically they are excellent, which is very positive."

The article continues without mentioning the anhydrous milkfat auction outcome - up over 4%. Adjust to butter the U.S. butter price should be in the $1.65 per pound range.

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