GlobalDairyTrade (GDT) auction begins at midday in London today, with the results coming out in the hours following.
For today’s auction, outlook via New Zealand’s ASB, in brief:
- expect whole milk powder prices to fall 1%
- futures pricing also points to a drop of around 1%
- So far, dairy prices posted modest falls against the context of the escalating US-China trade war. Indeed over coming months, we anticipate that the strength, or otherwise, of NZ spring production will have the largest influence on the direction of dairy auction prices.
Stronger dairy prices are a positive inout for the NZ dollar.