Whole Milk Powder prices could fall by as much as 10% at tomorrow’s Global Dairy Trade auction, according to latest developments on dairy futures markets.
Whole Milk Powder futures contracts traded on New Zealand’s NZX at $US2,300/t, lower than the $US2,453/t paid at the November 3, Global Dairy Trade auction.
According to New Zealand bank ASB, developments on the futures markets signal a fall of as much as 10% in Whole Milk Powder prices.
Futures contracts into December and the new year are also continuing to trade at a discount on recent Global Dairy Trade results.
— ASB Markets (@ASBMarkets) November 16, 2015
Prices at the last Global Dairy Trade auction fell 7.4%. It was the second auction in a row where the result has been down, with the October 20 auction also down 3.1%.
The four auctions since August 18 had seen the average auction price rise, after a long series of falls in price over the spring and summer.
According to ICOS’s latest analysis, any expected strengthening of dairy markets has been slow to arrive, with quoted prices rising only slightly.
It says the EEX Butter Index for last week was at €3,013, up about €300 on its weak point in August, but still at the level it hovered at for most of the early summer.
The SMP quote, at €1,810 is around €250 above its August low and is also somewhere around its level in early summer.
ICOS says the calculated milk price, on the basis of these quotes would be approximately 23c/L.