Recent results from the auction in the pic:

The final GlobalDairyTrade auction of the year

There is little in the way of a clear trend across products, results are expected to be mixed. Factors:

  • Threat of drought in New Zealand (will act to push up prices for whole milk powder
  • Large supply of skim milk powder in Europe

December NZX trading on whole milk powder futures indicate traders expect the price to rise around 2.8% percent at tonight's auction (Skim Milk Powder is looking at a fall though)


Just another couple of dairy-related points for the kiwi trading people:

  • Fonterra Co-op reduced its forecast Farmgate Milk Price for the 2017/18 season from $6.75 to $6.40 per kgMS yesterday ... a key influence is the decline in price for Whole Milk Powder (is down nearly 10% since 1 August this year)
  • NZX plans to extend trading hours for dairy derivatives market from July 2018 plan is for the market will stay open until 10pm NZ time (from a current close at 4pm NZ time)