When will global milk production hit a tipping point?
With global milk prices falling, the question is when will key exporting countries reach a tipping point where production starts to dip.
The lift follows better sentiment across markets generally, says ASB rural economist Nathan Penny. For example since the last auction, the S&P 500 has lifted around 4%.
The rise was bang on expectations, he says. WMP led the way, posting a 5.5% increase (although WMP remains around 13% lower than as at the end of 2015). Casein recorded the largest increase (up 14.9%), while SMP rose a more modest 1.3%.
ASB is maintaining its 2015-16 and 2016-17 milk price forecasts at $3.90/kgMS and $6/kgMS, respectively.
Key Results from last night' s GlobalDairyTrade Event 159:
AMF index down 8.3%, average price US$3,254/MT; Butter index down 0.5%, average price US$2,811/MT; BMP index down 2.9%, average price US$1,452/MT; Ched index down 0.7%, average price US$2,528/MT; LAC index up 7.9%, average price US$613/MT; RenCas index up 14.9%, average price US$4,569/MT; SMP index up 1.3%, average price US$1,802/MT;
WMP index up 5.5%, average price US$1,974/MT.
