Raw milk production in New Zealand showed a noticeable decline in September - Maxim Fasteev

‘If the statistics in August (-5%) were perceived as an accident against the background of a low season, in September production is gaining momentum, so such a significant decrease is a negative signal for buyers,’ the expert noted. ‘The decrease in milk production also explains Fonterra's actions to reduce the supply for GDT auctions, although before that the main reason was an increase in sales of New Zealand goods off the exchange.’

According to him, the latest statistics and the dynamics of European prices will have a direct impact on the upcoming GDT session, which will take place next Tuesday.

Earlier, Maxim Fadeev noted that the decline in the increase in the production of raw milk has a negative impact on the supply of skimmed milk powder and butter. The produced volumes of butter in the total amount go to cover previously concluded contracts, while the spot market is very limited, which drives prices up.