OMF NZ Dairy Futures market report – December 13, 2013

U.S. prices soften – local prices still firm With Thanksgiving behind us and the demand for Christmas now catered for, it would not normally be a surprise to see the U.S. dairy complex soften ahead of the end of the year as it did overnight.  That said we have long departed the realms of normality.  The NDM futures curve (the equivalent of NZX SMP) is suggesting a flat run for the next couple of months before falling away relatively quickly.  The Chinese demand has remained robust despite the record volumes that GDT has thrown at it and so the weakness may more relate to books being squared up ahead of the Christmas break.  That said there has been a lot of value accumulated over the past couple of months and so taking some money off the table may well be a prudent move.  Small trades in WMP and SMP this morning in the backend – April up $30 to $4990 and May up $50 to $4900. SMP – March up $50 to $4900