THE whole-milk powder market has been described as cautious, following a minor decrease in the Fonterra auction price this month.
Up to 21,000 tonnes of WMP sold for an average $US3256/tonne, down $US53/tonne, or 1.6 per cent, on last month.
Then, prices dropped 7.1 per cent on the previous month, to average $US3309/tonne.
This month's result was within the range of expected price movements and signalled the market was in reasonable balance, according to globalDairyTrade manager Paul Grave.
Mr Grave said it was encouraging to see prices remain relatively stable, in a range that was high by historic standards.
Dairy Australia trade and strategy industry analyst, Norman Repacholi, said buyers had not been looking for a lot of new product.
"They have stocks to cover for now," he said.
"After Chinese New Year they might buy if it is a good price, (but) they are not needing to buy now."
With reduced activity in the market place, Mr Repacholi said the result was no surprise.
"There is not a lot of new information to send the market in one direction or another direction," he said.
Although WMP prices dropped for the second consecutive month, Mr Repacholi said they were almost double this time last year.
Last year's February auction price was $US1851/tonne.
The average price from the sale of 3000 tonnes of anhydrous milk fat on globalDairyTrade was $US4183/tonnes. This was $US356 a tonne, or 7.9 per cent, lower than last month.
Mr Repacholi said AMF had been one of the stronger-performing products recently.
He said the drop in value could be a result of the price having overshot its mark.
Nevertheless, he said the value remained stable.
