Focusing on the Futures products, on a weighted average basis the WMP, SMP and AMF products increased in price by 0.85% on the back of a 12.87% fall in supply. OMF expects to see some support come to the NZX traded market in the short term as traders look at the headline numbers however we remain bearish in the medium term due to low demand for physical from Asia causing traders to offset risk by selling the futures.
It was a mixed day for NZX Futures yesterday due to some book squaring ahead of GDT. In Whole Milk Powder 112 lots traded in June at $3520, down $40, 150 lots traded in July at $3450, up $50 and 28 lots traded in August, finishing the session down $50. In SMP, 36 lots in July crossed the screen at $3750, down $30. Finally in AMF June 150 lots dealt at $3985, down 35 and July traded 32 lots, down $40.
