600 lots were traded soon after the market opened on Friday morning. The trading activity was spread across all products on offer. Whole milk powder (WMP) futures accounted for 200 lots and 100 lots of skim milk powder (SMP) futures changed hands. These were both in the nearby contact month ie July 2013.
Anhydrous milkfat (AMF) accounted for the majority of the trading volume with 300 lots traded. These were spread over the October, November and December 2013 contracts. These futures contracts traded at lower prices to previous trades of these particular contracts. The AMF Oct 2013 Futures contract was priced at US$4650/t, while the November and December contracts traded at US$4300/t and US$4200/t respectively.
Across the globe their has been some softening of prices for milkfat products such as anhydrous milkfat and butter. In the United States (US) stocks of butter have risen considerably in the past few months. Many US companies are looking to off-load their surplus butter supplies onto the global market. This has put downward pressure on prices.
Prices for other dairy commodities such as milk powders are remain at robust prices, although the NZX Dairy Futures market indicates that both WMP and SMP have lost a little ground over the past week.
