OMF NZ Dairy Futures Market report – November 26, 2013

Market remains firm – WMP up The market remains firm with WMP for March trading this morning at $4740, up $50.  The first four months of WMP are now virtually flat and the December to April spread which was at $500 a few weeks back is now looking to test $100. NZX Dairy Futures volumes up 45% on a year ago NZX Dairy Futures have performed well with volumes up 45% on a year ago.  We have seen some record trading days in recent times with nearly 1300 lots trading on the 22nd November. Saputo ups the bid for Warrnambool Saputo has upped its bid for Warrnambool now offering $9.20 per share.  It’s on the basis it gets more than 50% of the company.  An interesting observation, the current price is $9.23 suggesting momentum is running out and the market is starting to believe that $9.20 is the top bid.  The Warrnambool board has recommended shareholders accept the offer.  It’s pretty clear that Bega, MG and Kirrin probably won’t accept but it will be interesting to see if the remaining shareholders do.  A few weeks ago we felt Saputo was toast in this battle – they may now win the day here.