Saturday, March 30, 2024

Prices for milk powders ease further

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The NZX Dairy Derivatives market saw prices continue to ease last week, though all of the change was in milk powders. 
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Whole milk powder (WMP) futures closed the week at US$2270/t for the November 2015 contract.

The WMP contracts from December to February lost over US$200/t each last week. Skim milk powder (SMP) futures also saw losses last week, though not as large as those in WMP.

The November 2015 contract for SMP is now at US$1920/t. The volume of SMP traded last week more than doubled from the week before (+671t). Anhydrous milkfat (AMF) and butter did not see any changes in price. Prices are still seeing very little change over the next few months, with the predicted increases in future dated contracts only a few hundred dollars per tonne. Market activity in terms of volume and value was low again last week, though the number of trades was high.

Tuesday saw 29 trades occurring, and close to 20 trades occurred each day in the latter half of the week. Open interest positions were up slightly for most products. SMP futures saw the largest increase here, closing the week at 6453 open positions (+17.82%). WMP futures closed the week at 27,787 open positions (+1.78%), and AMF futures at 777 open positions (+34.66%). Butter futures did not see any change.

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