California is getting a decent drop of rain this weekend but they would need rains of biblical proportions to kill the current drought. Up until Saturday the San Francisco Bay Area has received 3 inches of rain this season compared to 14.5 it should have got. That gives you an idea of what is required. Final note – in previous times the late winter rains, sometimes termed “ The Pineapple Express”, have been the savior of a parched California; time will tell but we think it may “too little – too late” this year.
Our buy view remains unchanged on Milk. Whilst we think there may be some consolidation and even a short term correction, we believe the market may head higher medium to longer term. Chinese demand and weather being the constant fundamentals.
