Tuesday, February 2, 2010

Fonterra's Auction

Fonterra held another internet auction for whole milk powder (WMP)and anhydrous milkfat.

The WMP sale fell 1.6% to $1.47 per pound - not a huge drop.

WMP and NFDM are closely related in price.

Rumor has it that two West coast NFDM makers had an export deal (think Fonterra) which fell flat. So, the co-ops dumped the powder on the domestic market, driving the price down.

World wide milk powder prices are thought to run higher.


  1. Those two (un-named) west coast NFDM makers sure did a job on the producers of California with that 25 cent plunge in price. Business as usual. I still think they did it to raise cash to pay for their December milk at the higher prices.

  2. The amazing thing is how fast NASS prices fell-it takes a couple of months to carch up when it moves up- falls instantly.

  3. As an update, the California NFDM (CWAP) prices and sales for last week just came out showing sales of 17 million lbs for the week at average of $1.06. In the last two weeks that's approximately 51 million lbs at these prices. (About 1,173 loads of 43,000 lbs) Sure is a lot of powder that farmers aren't going to get paid much for.