“Bleh …”. what does he mean “Bleh …”?
Well, what I mean is the dairy auction wasn’t a great result:
- Overall, prices fell -8.9% in US dollars
- Down 8.7% in NZ dollars
- The GlobalDairyTrade index has fallen below the 1000 mark for the first time since January 2013 its -35% below its recent February peak (or -40% in NZ dollars)
- Wholemilk powder down 11% since the last auction two weeks ago
- Skim milk powder down -7%
- Butter and cheese down less than -2% each
- Excellent international grain crop harvest forecasts, and the recent fall in grain prices, may be behind the sudden dairy price changes.
- Payout forecasts of some observers are likely to be lowered later today.
via interest.co.nz
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Market focus in the overnight was much more on Yellen (links from here) and Portugal’s Espirito Santo Group than on the dairy auction, of course. But, nevertheless, it was a very weak result and the NZD has been under pressure. It dropped about 60 points and has only just managed to pick itself up off the floor, its not much of a bounce. There will be more selling pressure on any move up, and the CPI today takes on renewed importance.
