The Global Dairy Trade (GDT) auction is scheduled to begin at 1200GMT on Tuesday 20 January 2015
I posted earlier on it, with a comment from Westpac:
- “An emerging NZ drought of uncertain severity may produce extra demand at auction and thus support prices.”
There is more on the NZ drought here: Drought fears grow as dry spell continues (thanks to Chris in the comments for the link)
In other dairy/NZ related news today: ANZ cuts Fonterra milk payout forecast to NZ$4.35/kg
In doing so, ANZ cited:
- The uptick in supply from the major global exporters has been the largest in 8-years
- The bow wave in milk and inventory will take the market some time to clear
- There is increased competitive pressure from Europe
- Chinese domestic milk supply appears to have increased and more wholemilk powder is likely to have been manufactured
- Seasonally import demand isn’t expected to pick-up until the back end of 2015
- While current international prices are below the cost of production, it is taking longer than expected for these to feed through to all major markets and farm-gate prices
- Oil dependent nations have been a key source of demand in recent years
- We are anticipating (and are already seeing) some pull-back as collapsing oil prices affect their economic outlooks
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A bow wave of milk? Yuck.
