GDT up 16.5%

The GlobalDairyTrade Price Index increased 16.5% in this morning’s auction.

This is the third successive increase after more than five months of falls.

Fonterra has been offering a lower volume of product and production here is expected to be lower as a result of the low payout and the weather – too wet in Southland and too dry on the east coast.

gdt16915

GdT19.815

GdT19.8.15

4 Responses to GDT up 16.5%

  1. Gravedodger says:

    Very good news now someone needs to attempt to show if the falling markets could have been handled better by the highly paid marketing gurus at Fonterrible.
    How much damage was done inside and outside the monolithic NZ structure and could it have been handled better.
    btw nothing to do with the gummint and I fully understand really only affects Dairy Farmers but some of us have invested as non producers so answers are needed and I doubt if the FMA or any othes of the crats will bother to look.

  2. farmerbraun says:

    “Very good news “.

    It does depend on what prices and volumes are being exchanged outside of the auction. Most product is not sold at auction.

    http://www.nbr.co.nz/article/dairy-product-prices-advance-third-straight-auction-b-178772

    “2.5M tonnes last season, 3,500 tonnes sold this auction, i.e 1.5% so would it be possible that only buyers with urgent needs are buying from this massively constrained supply?
    So, where is the rest of the production?
    At 1.5% per fortnight, how many months/years to sell the crop. “

  3. Richard says:

    “Fonterra has been offering a lower volume of product and production”
    Appears a smart move- but it is not in the medium to long term. Fontera is simply storing inventory, that they hope they can dispose of in the future. Fonterra and ultimately shareholders will paying for for this inventory

    What is the cost of of holding this inventory?

  4. Richard says:

    FB –
    –“so would it be possible that only buyers with urgent needs are buying from this massively constrained supply? And So, where is the rest of the production?”
    My point – above, but but from a different perspective
    Can Fontera shareholders sell independently in other markets? I think not.

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