Whole milk powder (WMP) futures were trading at US$3000/t for the December contract two weeks ago, but this level is now only due to be reached in May 2016. Most WMP futures contract prices have declined by around US$200/t. The December and January contracts fell by just over 8% last week. Skim milk powder (SMP) futures contracts saw some price increases. However, the increases were small, with February and March contracts achieving just 4% more than a week ago.
Anhydrous milkfat and butter futures have seen no change in price from the previous week. Butter futures have not traded, while the volume of AMF traded last week was just 60 tonnes.
A total of 2631t was traded in the WMP futures market last week, down 2906t from the previous week. SMP futures were also down, trading 58% less than the previous week at 500t. Open interest positions were also down for almost all contracts as trades are closed ahead of next week’s GlobalDairyTrade event.
Despite the falls over the last week, however, October 2015 is already trading higher than October 2014. Volumes traded in the WMP futures market are 564t higher than they were in October 2014. Other products show similar rises.
