SMP for April traded down $50 to $4100. Offshore markets remain mixed but it appears the recent dramatic selloff in WMP and AMF is too good to pass up for some. Again all eyes will be on the second GDT for April next week. From our take, whilst the world is flush with milk, the market has already moved and priced that in. We would be stepping up and buying the next auction given the size of the recent correction and that there are potential weather-related issues ahead with New Zealand facing a severe lack of rain, especially in the Waikato and the U.S. about to enter summer for which all eyes will be on California and expectations do not bode well.
OMF NZ Futures Market report – April 9, 2014
Buyers have started entering the market with WMP for June up $10 to $3950 and AMF for April up $70 to $4070.
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