Trade balance with the US a saving grace
New Zealand is so far escaping the unpredictable vagaries of President Donald Trump's trade policies by the skin of its teeth.
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
