March 2016 WMP Futures have traded this morning at US$1795/t, US$55 higher than they settled yesterday. But as WMP traded at an average price of US$1890/t at last nights GDT auction the futures market is still in catch up mode.
Some futures prices for whole milk powder (WMP) and skim milk powder (SMP) on the NZX Dairy Derivatives market improved yesterday, prior to this morning’s GDT event. Prices for the February, April, and July futures contracts increased for WMP, while May through to August futures contracts increased for SMP.
A number of the WMP and SMP trades yesterday were for 100t of product. There seems to be more interest in slightly larger trades as we get more settled into the year. Volumes for individual trades have generally been larger than they were earlier in the year.
There was one trade for the February 2016 butter contract on Monday, before it settled for the month. However, the price it traded at was US$2790/t – down just US$10/t from the price it closed at on Friday.
There was also a WMP call option traded on Monday, which gives the right to sell 50t of WMP at a strike price of US$2250/t. The trade was priced at US$50/t.
Final settlement prices have been provisionally reached for February futures contracts. WMP is to settle at US$1862.50/t, SMP at US$1770/t, butter at US$2860/t and anhydrous milkfat at US$3450/t.
