Saturday, March 30, 2024

Butter futures lead the way down

Avatar photo
All butter futures contracts that are currently trading on the NZX Dairy Derivatives market eased on Wednesday. The February contract eased by US$75/t and is now at US$2800/t. The October contract has eased to US$2965/t. 
Reading Time: < 1 minute

Similarly, all anhydrous milkfat (AMF) futures contracts dated until October have eased. The February futures contract for AMF is currently at US$3325/t, and the October futures contract at US$3500/t.

March, April, June and July futures contracts for whole milk powder (WMP) have eased. The March and April contracts continue to trade at a discount to the February contract. The March futures contract is US$1725/t. WMP is set to reach just US$23700/t by October.

There were three trades for butter (March, April and June futures) on Wednesday, all for 40t of product.  The bid price, rather than the offer price, was accepted for all three trades. There was also one small trade for AMF, but the remainder of the total 16 trades across the last two days have been for WMP.

Volumes were small on Wednesday. One trade was just 5t. Yesterday, however, there were two 100t trades, though prices were low.

There was also one WMP put option traded, which provides the right to sell 300t of WMP futures at a strike price of US$1750/t. The trade was priced at US$95/t. 

Total
0
Shares
People are also reading