Friday, March 29, 2024

Record attendees at NZX Global Dairy Seminar

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NZX held its annual Global Dairy Seminar in Singapore on Tuesday, attended by a record number of delegates from China, South East Asia, Europe, America and New Zealand including commodity traders, market participants, investment bankers and senior executives. Topics covered included an overview of the global dairy market, basics of commodity derivatives, establishing a corporate hedging programme and hedging strategies.
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The strong interest in NZX’s second annual seminar underlines the increasing global interest in NZX’s dairy derivatives market, which had a stellar third quarter, with record volumes of 83,222 contracts traded, up 125% on Q3 2014, and revenues up 232%.

NZX head of derivatives Kathryn Jaggard commented: “NZX’s global dairy seminar has quickly become a landmark event for the industry. It cements the work we are doing to help grow market participation and confidence in the dairy industry and follows the substantial trading traction we have been getting in the market.”

AgriHQ dairy analyst Susan Kilsby, from NZX’s agricultural market intelligence brand, presented the seminar’s keynote address on factors influencing the dairy industry. Highlights from her speech included the following comments:

“Dairy commodity participants need to understand what is happening in the global markets to make solid business decisions. It can be difficult to anticipate global milk production, particularly for countries like New Zealand where production fluctuates – small variations in global milk supply can have a significant impact dairy commodity prices.”

“Europe’s milk supply is currently growing three times faster than the rate which New Zealand’s milk supply is contracting. The extra milk explains why dairy commodity prices have been low this year. New Zealand’s milk supply is expected to slow further in 2016, which will help to offset the strong growth from Europe.”

“There are indications China’s milk supply is slowing and milk powder stocks are worked through, this will also help the global markets to rebalance, however significant lifts in prices are not anticipated until well into 2016,” Kilsby commented.

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