Dairy Trader - INALE

The

 Dairy Trader      

Monday, 31 January 2011

Prices stronger in NZX dairy futures markets Dairy commodities prices continue to firm in all markets. Stronger whole milk powder prices have been exhibited on the NZX dairy futures market. Last Friday, trading in the February‐11 and March‐11 WMP futures contracts took place at $3,875 and $3,975 respectively. The latest Agrifax price series shows Oceanic sourced whole milk powder (WMP) trading at US$4,000 per tonne. European prices have also strengthened across all dairy commodities. At current exchange rates, European WMP and butter are priced higher than the same products sourced from Oceania. US dairy commodity prices are also on the rise. USDA product prices for the week ended January 22nd, recorded a sharp rise in butter prices. US butter gained 18.9 cents to trade at US$2.00 per pound (US$4,400 per tonne), but despite the gain, US butter is still priced well below European and Oceanic product. Whether the current bullish market will be reflected in this week’s globalDairyTrade auction remains to be seen. Whole milk powder has been trading at prices in excess of the level seen at the last gDT event. The volume of product on offer at the next auction has tightened, but this was mainly in‐line with the forecast seasonal decreases in gDT product offerings previously announced. However, the up coming Chinese New Year may impact on buyer interest from Asia. When other price series are considered there appears to be more upside potential for whole milk powder than skim milk powder or anhydrous milkfat.

Seasonal Wholemilk Powder Prices ‐ US $ per tonne

Wholemilk powder prices  ‐ US$ pertonne

5,800 4,800 3,800 2,800 1,800 800

4500 4000 3500 3000 2500

Jun gDT WMP contract 1

Jul

Aug

2008/09

Agrifax WMP

Sep

Oct

Nov

2009/10

Dec

Jan

Feb Mar

2010/11

Apr May

Jun

Source: Agrifax

Source: globalDairyTrade, Agrifax Source: globalDairyTrade, Agrifax

On 18 February NZX Dairy Futures will launch futures contracts for skim milk powder (SMP) and anhydrous milkfat (AMF) To view the draft contract specifications for SMP and AMF please click here Click here for more information on Agrifax products

News

NZX Dairy Futures

Second Chinese Crafar bid 'will not fail' ‐ backers Privately owned Shanghai company Pengxin Group is the new preferred applicant following the withdrawal of the UBNZ Funds Management bid involving May Wang...

Settlement prices for Global WMP futures (US$) Jan‐11 3725 Oct‐11 3940 Feb‐11 3875 Nov‐11 3940 Mar‐11 3975 Dec‐11 3940 Apr‐11 3875 Jan‐12 3940 May‐11 3875 Feb‐12 3940 Jun‐11 3875 Mar‐12 3940 Jul‐11 3940 Apr‐12 3940 Aug‐11 3940 May‐12 3940 Sep‐11 3940 Jun‐12 3940

Read More

Agria looks to ‘localise’ relationship with PGW The Chinese investors looking to take a majority stake in PGG Wrightson (PGW) want greater farmer representation on the rural services group's board... Read More

global DairyTrade Next g DT auction Tuesday, 1 February 2011 Results for 18 January 2011 Contract 2 Contract 3 Contract 1 Forecast annual  supply Delivery Period March  Apr ‐ Jun Jul ‐ Sep 3546 3581 Skimmilk Powder 3605 109905 n/a n/a Buttermilk Powder 3880 7800 3819 3960 Wholemilk Powder 3701 420000 5880 6104 Anhydrous Milkfat 5969 63000 gDT‐TWI™ 1203 * gDT prices are USD/metric tonne FAS, Agrifax prices are USD/metric tonne FOB.  

Quantities available next auction Contract 2 Contract 1 Contract 3 April  May ‐ Jul Aug ‐ Oct 1650 1500 750 0 0 0 7000 4000 2500 1025 825 300

This report is published by NZX Agrifax Limited (NZX Agrifax) for your information only. This report does not constitute an offer, solicitation or recommendation to acquire or dispose of any investment or financial product. No part of this publication may be redistributed or reproduced in any form or by any means or used to make any derivative work without written permission from NZX Agrifax. NZX Agrifax (including its group companies and each of their directors, officers, employees and contractors) shall not be liable (except to the extent strictly required by law) for the use of the information contained in this report, however arising. This report is published with due care and attention, but NZX Agrifax and its group companies accepts no liability in relation to the completeness, accuracy or timeliness of this report and its contents. NZX Agrifax Limited  ti li f thi t d it t t NZX A if Li it d (c) 2010 2010

www.dairyfutures.com

Subscribe for FREE! http://subscribe.nzx.com