A preview of today's GDT (GlobalDairyTrade) auction later
The most recent auction saw a price fall, not helpful for the embattled as it is kiwi $
The estimates I have seen are for a small fall in the price of WMP (milk powder) at the event today.
ASB's look ahead:
- We expect prices to be unchanged at the GlobalDairyTrade auction overnight Tuesday. A fortnight ago whole milk powder (WMP) prices fell 2.1%. At the current juncture, futures pricing suggest WMP prices will lift by around 2%.
- However, we are more bearish than the futures market for a couple of reasons. Firstly, the futures market has overstated auction results ahead of the event in recent times. Secondly, NZ production is peaking over the coming months and this is coinciding with a peak in auction volume offerings. On this basis, we anticipate that prices will remain subdued over in the short term.