Futures prices for whole milk powder (WMP) traded on the NZX derivatives market, the New Zealand-based exchange, hit their highest level this week since mid-January, thanks to last week’s positive result at the GDT auction.
In the wake of last Tuesday’s GDT auction, WMP futures extended recent gains with May, June and July contracts for WMP all improving by a further 5%. Although dairy markets remain extremely weak, the futures market for WMP appears to have found a floor and is in recovery mode with quoted prices rallying by 27% since early February.
Futures prices for WMP can act as a proxy for the performance of the biweekly GDT as WMP accounts for half of all product sold via the GDT auction platform.
After two successive positive results at the GDT auction, dairy markets have rediscovered some much needed stability, which is lending support to WMP futures prices. However, while signs of stability are certainly welcome, the overall dairy market remains volatile and uncertain.
Improving Chinese imports
One positive sign for dairy markets is the continued resurgence of Chinese dairy imports. The latest figures show that Chinese imports of all dairy commodities for the month of March were a little over 206,000t, an increase of more than 40% when compared with the same month last year.
All in all, dairy commodity imports by China for the first three months of the year are more than 37% ahead of where they were in 2015, with just under 630,000t of product snapped up by Chinese buyers.
In volume terms, the greatest demand continues to be for WMP and whey powder, although Chinese demand for cheese is surging ahead so far this year (+62%), albeit from a low base.
Read more
A world drowning in a sea of milk – trying to stop a ripple becoming a tsunami
Dairy trends: GDT rises by almost 4% after latest auction
Futures prices for whole milk powder (WMP) traded on the NZX derivatives market, the New Zealand-based exchange, hit their highest level this week since mid-January, thanks to last week’s positive result at the GDT auction.
In the wake of last Tuesday’s GDT auction, WMP futures extended recent gains with May, June and July contracts for WMP all improving by a further 5%. Although dairy markets remain extremely weak, the futures market for WMP appears to have found a floor and is in recovery mode with quoted prices rallying by 27% since early February.
Futures prices for WMP can act as a proxy for the performance of the biweekly GDT as WMP accounts for half of all product sold via the GDT auction platform.
After two successive positive results at the GDT auction, dairy markets have rediscovered some much needed stability, which is lending support to WMP futures prices. However, while signs of stability are certainly welcome, the overall dairy market remains volatile and uncertain.
Improving Chinese imports
One positive sign for dairy markets is the continued resurgence of Chinese dairy imports. The latest figures show that Chinese imports of all dairy commodities for the month of March were a little over 206,000t, an increase of more than 40% when compared with the same month last year.
All in all, dairy commodity imports by China for the first three months of the year are more than 37% ahead of where they were in 2015, with just under 630,000t of product snapped up by Chinese buyers.
In volume terms, the greatest demand continues to be for WMP and whey powder, although Chinese demand for cheese is surging ahead so far this year (+62%), albeit from a low base.
Read more
A world drowning in a sea of milk – trying to stop a ripple becoming a tsunami
Dairy trends: GDT rises by almost 4% after latest auction
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