GDT auction from 03 Nov. 2015 - after strong impetus a further back-setter
After the strong gains of the last 4 dates with rises in total up to 50% the last two auctions deliver dairy trade (GDT) for the month of Oct global. 2015 again a back piecing together-10%. The latest auction from 03 Nov. 2015 cut off with – 7,4% clearly.
The bid amount was approximately at the same level as in the previous auction. On the demand side, restraint was not so much after you provided is sufficiently in the previous dates with goods. The highlight of New Zealand production is the month of Oct. Therefore has sufficient quantities to be expected in the near future. Rather, it has held back potential buyers. The El Niño effect is not yet apply in New Zealand. Milk production is located just below the line of the previous year.
The two full and skimmed milk powder arrived same negative results-8%. While the front delivery months were particularly bad Dec. 15 and Jan. 16 for whole milk powder with-17% and 14%. The months brought price reductions in the new year to May 16 between 6.8 and-8.6%.
In the area of skimmed-milk powder the rate reductions ranged from Dec. 15 to Feb.-16 - 6.5% - 9.1% and decreased until May to 1.6%. The MMP rates have recovered so far at least. This is true all over the world.
In contrast, courses for butterfat have already recovered until just under the 5 year average. % Is the old price ratios between the dairy again approaching the current withdrawals from continuous average 5.7.
Greater price loss was normal butter almost all delivery dates between - 17.8% to cope with up to - 11.9%. The exception was only the May 5.6.
The results of recent auctions provide an interruption of one recognizable basic rate increases. The global balance of supply and demand are no longer shaped by an above-average bid amount, but by much throttled growth rates. On the demand side, the inventories built up are so far removed that there is additional need. However, Russia blocked imports are missing still. China's imports have again easily moves upwards, reaching but not the momentum of earlier years. Stronger economic growth is missing the Chinese. The reduced purchasing power of the repeatedly devalued Chinese currency also restricts the desire to buy.
The expected cyclical upturn of price in the year 2016 is significantly less fall out after today's level of knowledge and require a longer period of time than in previous years.
