Something for the NZ dollar traders – GlobalDairyTrade (GDT) auction begins at midday in London, with results coming out in the hours following.
For tody, WPAC:
- auction tonight is priced by futures markets to result in a 2% decline in whole milk powder prices.
- We expect whole milk powder prices to fall 1%
- At the current juncture, futures pricing also points to a drop of around 1%.
- We anticipate that the fall will largely reflect the decline in the CNY against the USD since the last auction. Note that Chinese buyers are the largest group participating on the platform and that auction prices are set in USD. Notably, fallout from the US-China trade war escalation has been relatively modest in global dairy markets so far.
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