GDT up 12.7%

The futures market was expecting an increase in dairy prices but the 12.7% rise in the GlobalDairyTrade price index in this morning’s auction exceeded expectations.

GdT17.8.16

It’s too early to get too excited but the 18.9% increase in the price of whole milk is encouraging.

gdt17816

And while two increases doesn’t make a trend it’s a welcome change from consecutive decreases.

g.D.t.17.8.16

The dollar also went up in reaction to the news :

The result saw the New Zealand dollar rise from around 72.40 US cents before the auction to 72.70 cents by 5am. . . 

That seems a bit premature to me, the price is still a long way from what’s needed to get to a payout of $5.05 which is break-even for most farmers.

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