Enough with the China GDP already, time to turn to the true driver of the global economy: the price of milk.
Ever wondered why political candidates are always asked the price of milk? Now you know, K?
Enough drivel.
The GlobalDairyTrade auction is during the London time zone. It begins at 1200GMT and results will trickle out in the hours following.
We've had one auction this year, which resulted in a price fall:
What to expect at the auction tonight?
Westpac chief economist Dominick Stephens didn't have specific comments on the auction due tonight, but did say:
- China slowdown bad news for commodities, including dairy
- "Already this year, we've seen dairy prices come under renewed pressure
- Combined with the global backdrop ... it's not hard to see down-side risks building, not only to our 2015-16 farm-gate milk price payout forecast of $4.50, but potentially beyond this.''
ASB senior economist Jane Turner:
- Tonight's GDT auction might see "a small tick up in dairy prices'',
- Overall trend remained weak
ANZ's Con Williams:
- Anecdotal feedback suggests that buyers are relatively comfortable with their inventory positions at the moment
- They think that with perhaps an improvement in New Zealand seasonal conditions that they are going to be less willing to build stock
Westpac's Sean Callow:
- "Futures are not giving a clear directional hint, though we see downside risk as pressure on global commodities overall could impact dairy as well"
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The problem with dairy-related posts is they cry out for me to post in Kelis' 'Milkshake' song.
But, I've posted it before, probably more than once.
And, its not really SFW ... one of the reasons I like it so much probably.
This is apparently the funniest milk ad ever: