Dairy buoyant
The Rabobank Rural Confidence Survey found farmers' expectations for their own business operations had also improved, with the net reading on this measure lifting to +37% from +19% previously.
The overnight Global Dairy Trade auction saw the price index fall by a slim 0.8% compared to the previous event.
Total volumes sold were 20% lower, aligned to seasonal declines, and broad expectations. Both WMP and SMP prices increased, 0.1% versus the last event. Prices for butter and AMF took a hit, down 5.8% and 2.4%, respectively.
Bailey says diving into the numbers, at first blush there is not a big story to tell.
“Offer volumes were largely unchanged for core products WMP and SMP.
“There was an increase in butter and AMF volumes, 42% and 3.5% respectively – helping to explain their price falls.”
Key results
AMF index down 2.4%, average price US$3,973/MT
Butter index down 5.8%, average price US$3,867/MT
Ched index down 6.8%, average price US$4,115/MT
LAC index up 7.9%, average price US$1,153/MT
RenCas index down 5.1%, average price US$8,891/MT
SMP index up 0.1%, average price US$2,373/MT
WMP index up 0.1%, average price US$2,745/MT
