Judging by the sentiment in dairy futures markets right now, we could be looking at another rise in prices at this week’s GDT auction. Should this happen it would be the seventh consecutive increase in the benchmark dairy index since the end of March.
At the last event, whole milk powder (WMP), which is the most important commodity traded on the GDT, ended a two month rally as average prices declined 3% to less than $3,150/t. However, the futures market for WMP has held steady since then and posted a slight increase over the last week with July, August and September future contracts for WMP rising 2%.
Judging by this sentiment in the WMP futures market, coupled with rising prices for most other commodities over recent weeks, it’s probable we could see a slight increase at this week’s GDT auction in New Zealand.
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