meta Futures market points to another rise in prices at Global Dairy Trade :: The Bullvine - The Dairy Information You Want To Know When You Need It

Futures market points to another rise in prices at Global Dairy Trade


The latest NZX futures market points to an 8-10% rise in whole milk powder (WMP) prices at tomorrow’s Global Dairy Trade auction, New Zealand bank ASB has said.

Last week, WMP futures prices broke through the US$3,000/MT barrier and look set to remain above that barrier until July.

Futures prices for October WMP contracts at the latest NZX futures market suggest that WMP will trade at US$3,120/MT.

As reported last week, these positive futures prices could point to a fourth consecutive price rise at tomorrow’s Global Dairy Trade.

The last three Global Dairy Trade auctions have all been positive auctions, up 7.7%, 12.7% and 6.6% respectively.

At the most recent auction, the main movers being anhydrous milk fat (AMF) (+15.4%) butter (+14.9%) and skimmed milk powder (SMP) (+10%).

Following these positive auctions, farm organisations have said that dairy farmers would expect legitimate increases in the August milk price and several Irish co-ops have increased the milk price for August supplies.

Last week, it was announced that farmers supplying Arrabawn will receive a base milk price of 25.67c/L for August while Dairygold is to pay its suppliers an August milk price of 24.5c/L plus a Quality Bonus (0.5c/L) and VAT.

Lakeland Dairies also announced a milk price rise last week of 1c/L bringing the base price to 25c/L and Kerry increased its milk price for August supplies of milk by 2.5c/L, which will see member suppliers receive 25c/L, including VAT, for August milk.

Meanwhile, Glanbia member suppliers will receive 25c/L for August supplies, which includes a 2c/L Glanbia Co-operative Society support payment to its members.

 

Source: Agriland


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