Thursday 23 November 2017
The traded commodity dairy market has been a little quiet over the last 2 weeks with many NZX participants in Singapore the week before last for the dairy conference which is now locked in many diaries (I must put it in mine!)
However, there is a good deal going on in corporate, financial and commodity markets more generally so I thought that I would focus on a few of these things, augmented by some of my favourite charts from the last 2 weeks. As a result there is probably a good deal more “editorial” than usual so feel free to ignore!
A bit of a longer commentary this week but there has been a 3 week gap since the last auction and there has been a reasonable amount happening!
Volatility in the market remains contained but the last month has effectively seen WMP prices drop back from the $3,000/t - $3,300/t trading range into a $2,900/t - $3,000t range.
As the chart below illustrates (WMP prices in yellow and SMP prices in pink), notwithstanding this move lower in WMP, the market does still feel a little like it is defying gravity and pressure remains for prices to soften somewhat further.
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