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Daily Update: 28th of November

1 min read

    Yesterday was an active day, but without much new information. That is why today's update is short but pointy. In general, the market keeps trading down at a relatively firm pace.

    We did see that Arla announced that their milk price for November will be higher by adding 1.5ct per litre. This is a surprising move in a market that has lost about 15% -30% of its value over the last few months. We think it will be unlikely that other co-ops will quickly go down with their milk price as the "fight for the farmer" is still on. But these high pay-out prices for milk will be cause for concern for the sales departments from the producers.

    The NZ milk production continues to be down and reported 3.5% less in September. The fact that the big decline in NZ milk isn't pushing prices further up, tells us maybe more about the demand side. It might be good news that the Kiwis aren't pushing out as much milk as their EU colleagues.

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