Dez-GDT auction with 3.6% again in the plus
The 1 global dairy trade auction in Dec. 2015 has confirmed with an average increase of 3.6% compared with the previous auction, that milk prices bottoming is bottomed out and a stabilization of rates halfway to multi-year averages is strengthened.
The scarce auction lot of only 28,000 tonnes has provided a significant contribution to this result. With a very few exceptions, more money had to be applied in all delivery dates if you wanted to get to desired goods. The auction results demonstrate that there is a stable demand on a lower plateau of quantities.
Normal butter graduated from the best at this auction with the highest average score of + 5.7% . The Jan. 16 result with an increase to the first auction of + 55%was a surprise. May was this urgent need to catch up on the demand side. A classic failure of a bidder would also not be excluded. The average price of $3,915 per t butter, which are all under the brand of 3,000 falls completely out of the frame of previous and subsequent courses, $ located je. May was also an orientation in the US's butter classes around the 6,000 the template, $ the t record.
The emphasis lies as always the auction at the whole milk powder (WMP) with more than half of the auction volume. The average price of 5.3% largely evenly spread over all delivery dates to including June 2016. Until the half of the year 2016, an indication that is to be expected for this year with higher rates is the high bidding prices.
Somewhat weaker and also uneinheitlicher the auction results cut off in the case of skimmed-milk powder . + 3.2% in average and a range of - 1.1% in the Jan. 16 to + 8.4% are used the turnouts in the Apr. 16 on an upward trend. The price level of $1.918 je is still below the average results from the United States and the EU.
Butterfat it has hard to prevail in this environment. An average increase of + 2.3% covered some weak results in the Jan. Schedule - 3.1% and at the May-16 delivery with 0.5%.
Overall, the current exchange rate trend shows measured on the 10-year average, that the stabilized price upswing has become. However, it remains still well below the long-term average. The below-average volume of auction makes it clear that in the future much larger quantities will be served again rate reductions. Given the cyclical and seasonal decline of New Zealand milk production is only time not to be expected.
