Friday, March 29, 2024

OMF NZ Futures Market report – February 25, 2014

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We saw WMP trade in decent size this morning; June and July traded 250 lots each at $4850 which was unchanged.  August and September traded down $20 to $4780 and $4730 on 112 lots each.  There is still good demand to buy at current elevated levels and with the backwardation in futures increasing, it looks very good buying overall in the back months relative to spot.  
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The U.S. markets continue to accelerate; Class III was up 41 cents for March to $22.20.  The backwardation is increasing with September at $18.99 (up 13 cents); a difference of $3.21.  Class IV was also higher but not as much as Class III.  March futures for Class IV was up 8 cents to $23.28, still at a premium to Class III and whilst it’s also in backwardation the difference between March and September for Class IV is only $2.54.

Nevertheless, all milk remains in backwardation which is attractive for buyers in the back months.

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