Last week Rabobank released its quarterly dairy report saying “the strength of the recent rally is hard to justify on current fundamentals.” It came out the day before the latest GDT event, at which the index dived 8.8%. Rabobank’s global reach and status means most GDT bidders would have read the report. The expectation for a correction was set, and sure enough, the market delivered. Of course, the fundamentals were out there anyway so prices were likely to ease regardless of the report, but probably not nearly as sharply. Thanks Rabo: great report; lousy timing.
-
font size
decrease font size
increase font size
Expectation is a powerful force in commodity markets. Show buyers a correction is due and they’ll reduce demand, precipitating the predicted fall.
More like this
It's all about economics
OPINION: According to media reports, the eye-watering price of butter has prompted Finance Minister Nicola Willis to ask for a 'please explain' from her former employer Fonterra.
Red line on dairy
OPINION: As India negotiates to open its borders to more global products, dairy is proving a sticky issue.
Farmland security
OPINION: Paranoia about foreigners is at an all-time high in the US and attention is now turning to foreign-owned farmland.
Cuddling cows
OPINION: Years of floods and low food prices have driven a dairy farm in England's northeast to stop milking its cows and instead charge visitors to cuddle them.
Popular Reads
Alliance offloading 70% stake to Irish meat company - report
Irish meat processor Dawn Meats is set to acquire a 70% stake in Alliance Group, according to a report in…
Farmer concerns are grounded in reality, not 'no-hope narratives'
OPINION: The 'Save Our Sheep' campaign is built on a foundation of structure, integrity, and evidence from the Federated Farmers…Fibre broadband expansion to 95% of NZ gets green light – a win for rural connectivity
The Infrastructure Commission has endorsed a plan by Chorus to expand fibre broadband to 95% of New Zealand much to…Groundswell ramps up ‘Quit Paris’ campaign across New Zealand
Groundswell is ramping up its 'Quit Paris' campaign with signs going up all over the country.Federated Farmers reject call to leave Paris Agreement
Federated Farmers is joining major industry-good bodies in not advocating for the Government to withdraw from the Paris Agreement.Featured
Urea plant faces forced closure over gas supply
One of New Zealand’s largest fertiliser plants could be forced to shut down for four months as uncertainty looms over gas supply.
Rural backlash over plan to cut police staffing
Federated Farmers North Canterbury president Bex Green says two public meetings held this week should have made it loud and clear that rural families and businesses are concerned about proposed staffing changes at NZ Police.
EPA proposes ban on weedkiller Chlorthal-Dimethyl
The Environmental Protection Authority (EPA) is consulting on a proposal to ban weedkillers containing chlorthal-dimethyl (DCPA).
DairyNZ thanks farm staff
August 6 marks Farm Worker Appreciation Day, a moment to recognise the dedication and hard mahi of dairy farm workers across Aotearoa - and DairyNZ is taking the opportunity to celebrate the skilled teams working on its two research farms.
Editorial: Getting RMA settings right
OPINION: The Government has been seeking industry feedback on its proposed amendments to a range of Resource Management Act (RMA) national direction instruments.
CO₂ hot water system slashes dairy shed energy costs
A Taupo company says it's the first to bring CO₂-powered water heating technology to New Zealand dairy sheds, helping farmers cut energy costs by up to 85%.
National
Why is butter so expensive in New Zealand? Fonterra explains
Kiwis love their butter, and that's great because New Zealand produces some of the best butter in the world. But…
DairyNZ chair defends butter prices amid global demand
DairyNZ chair Tracy Brown has waded into the debate around soaring butter prices, pointing out that the demand for dairy…Govt to rethink farm health and safety rules with practical reforms
Farmers are welcoming new Government proposals to make farm health and safety rules more practical and grounded in real-world farming.Massimo’s brings fresh mozzarella to NZ tables
Missing fresh mozzarella cheese made at home in Bari, southern Italy, Massimo Lubisco and his wife Marina decided to bring…Tahuna dairy farmer Annabelle Scherer carries on family legacy
Tahuna dairy farmer Annabelle Scherer is hoping to continue the legacy her mother has handed down to her: One that…Machinery & Products
Samasz XDF Front Mowers launched for NZ's tough terrain
Samasz distributor FarmShop has introduced the new XDF Series Front Mowers, said to be refined for local conditions and to…
Lely unveils A5-Next milking robot to mark 30 years of automation innovation
With 2025 marking the 30th anniversary of its first milking robot being installed in Belgium in 1995, Lely says it…JFC Agri launches Evolution S4 Automatic calf feeder in New Zealand
JFC Agri launched its innovative Evolution range of automatic calf feeders, including the state-of-the-art Evolution S4 Automatic unit, to New…Pro feeding robots to cut, load silage
While feeding dairy animals in New Zealand is largely centred around feed trailers, mixer wagons or baleage, one wonders whether…Fliegl offers effluent solutions
Founded in Germany as recently as 1977, today, the Fliegl Group employs more than 1100 workers, offering an expansive range…» Latest Print Issues Online
Milking It
Fatberg
OPINION: Sydney has a $12 million milk disposal problem.
Synlait snag
OPINION: Canterbury milk processor Synlait's recovery seems to have hit another snag.
» eNewsletter
