Prices are moving up everywhere

OMF Dairy Futures Report – November 22, 2013 Prices are moving up still buoyed by GDT result earlier in the week when a “truckload” of volume in WMP was soaked up. WMP Futures looks firm; there is quite a bit of bidding interest right across the curve.  Already today January WMP traded at $4730, up $60 and March dealt at $4650, up $40.  Our view is the rest of the curve will get paid.  Spot is still tracking much higher than the steep backwardation in the market.  Given Tuesday’s GDT result many are starting to ask the question that perhaps futures is too cheap and if spot holds up, then something must give.  Already we have seen the backwardation in December/April move from -$500 to near – $200.  It would not surprise us to see this market flip into contango at some point given the tension we are seeing. Action in AMF AMF sparked into life yesterday – December, January and February all traded up on decent volume (350 tonnes).  December closed at $5100 – up $50, January was up $70 to $5050 and February finished up $60 at $4970.    Milk is on the move up everywhere!  Class III and Class IV were well up overnight – playing catch-up by the look of it.