Global dairy prices held broadly steady overnight, but . . . - ANZ
|Analysts at ANZ explained that global dairy prices held broadly steady overnight, with the GDT-TWI easing 0.5%.
Key Quotes:
"This is the first fall (albeit small) for the year after prices had risen a cumulative 13% over the prior three auctions. The dip arguably reflects easing concerns over local milk flow as weather conditions turned more favourable. Whole milk powder (WMP) eked out a 0.3% gain, with an average price of USD3,246/tonne."
"The curve is remarkably flat. You wouldn’t say the cement is dry yet on Fonterra’s $6.40/kg MS milk price for the 2017/18 season, but with roughly 80% of the season’s product now sold, it is getting close to that point."
"Therefore, in many ways, attention is turning to how the 2018/19 season could go."
"We are a little mindful of prices easing further into May as the local production season has a strong finish, but still expect a USD2,800-3,200/tonne range for WMP to hold."
"But ultimately it is the recent strength in the NZD that could prove to be the real party pooper."
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.