The high stocks (especially in China but also in the US), high world milk production recorded for over a year (especially in the EU, US and New Zealand), the Russian embargo and low energy demand are encouraging the international dairy market does not react and continue downward.
In the latest Fonterra auction held on July 15, an average price of $ 2,082 / ton, which is 11% lower than the previous auction, representing the ninth consecutive decline was reached.
So far this year, the average price at auctions of Fonterra has been reduced by a quarter. With regard to price peak reached last March 3, the price of the last auction has fallen by 40% and 64% from the peak in April 2013.
Fonterra auction, which is bi, brings together leading vendors and buyers from dairy products, is a benchmark for the world market situation. The methodology of this auction is the following: It is part of a number of products at a starting price announced on the web. From there, start a business or round event, which usually lasts two or three hours-in which bidders offered a price for the amount they are willing to buy. At each round if the amounts demanded are higher than those offered, price rises and reopen a new round. Events happen until the quantities and prices adjust and the highest bidder wins.
