Bullish Continuation

Yesterday the market showed itself from its most bullish side again. With sales liquidity still at almost zero it seems everyone in the market is looking for that one offer to appear on the market. Those offers that appear on the market are all on the high side, but as there is little to choose from we see some buyers are starting to accept the reality and confirm the offers in front of them. 

Still, it's not the increased demand that is pulling the market for all products, it's the negative news surrounding milk collection that is the main reason for the more bullish moves we see. With less milk compared to last year, more producers are starting to postpone deliveries, and temper expectations about their output. And with the buying window for the start of next year closing fast, buyers seem to be prepared to accept higher prices.

Pulse Down:

Those who weren't willing to accept higher prices were the buyers on the GDT Pulse, with roughly 4% lower prices compared to last week's GDT the upward trend from the GDT is broken again. We see that partners who are active in the powder part of our commodity markets are frustrated with the indecisiveness of the market. It feels nervous and uncontrolled and buyers and sellers are both not sure what to expect.

Dollar Down

Something else that went down was the dollar/euro fx rate. The dollar seems to be weakening again against the euro, making the export position of the US better, and that of the EU worse. The effect will be felt most by sellers of EU powders.