We are still seeing very firm cheese and butter markets and we feel this will flow through to the likes of WMP given its discount to SMP and AMF. Again, all eyes are perpetually on GDT though as we move to the back end of our season’ the focus will go on other markets such as Europe. Our view remains that the large corrections seen in our market will bring buyers back to the market. As we have mentioned previously, post $4500 prices were hard to swallow for many so given we are back below that level for WMP, we would expect to see some buyers move back into the market. We are seeing at present in WMP, June WMP traded at $4330 which is down $40 but July traded at $4360 which is flat but confirms the market’s contango.
Weather wise, we are getting confirmations from our weather bureaus that dry conditions are likely to remain in the North Island with rainfalls expected to be light this month and next.
