Sunday, July 3, 2022

Surge in trades on NZX Dairy Futures market

The NZX dairy futures market recorded a flurry of trading activity yesterday.  

Anhydrous milkfat (AMF) was the main commodity in demand with 400 lots changing hands in a single day.  Lots traded were for the nearby contract (May 2013), plus trades also occurred in the Oct 2013, Nov 2013, and Dec 2013 AMF contracts.  Prices eased with some contracts falling by as much as 2.4% yesterday.  The Dec 2013 contracts for both AMF and whole milk powder (WMP) are both currently priced at US$4,000/tonne.  A downwards sloping forward price curve is clearly evident (see graph below).  

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