Unusually Active

Yesterday the week we have started with a lot of activity, which is quite unusual for a Monday. It is even more unusual for a Monday before a GDT and we were not expecting any activity at all as we are also a week before the Anuga. Historically these days are very inactive as most partners prepare for Anuga and prefer to have a "wait and see" policy. We can't find any good argument for this activity, and those who can we invite to inform us. 

We traded quite a bit of volume between all the products we broker and most of the initiative came from sellers who were willing to move some volume. We see that more of our partners put offers up via our platform and with that have a broader reach in our network. We brokered over 600mt in the last 5 trading days via this way of working! For those who would like to offer some volumes in the coming days, we invite you to use our platform. As we see little new information we assume most of the sellers are just testing the waters to see where te market interest is.

GDT to trade higher

The market is pricing in a good bullish GDT. With SGX futures up roughly 5% for WMP and 8% for SMP, there is little reason to expect anything else. For Europe, the event might be extra bullish as the euro/dollar fx rate also changed since the previous GDT in favour of the EU sellers. They are now more competitive. The butter futures point towards a gain of 2%, but we are a bit less convinced about the butter's upward potential. We see that the EU has taken quite some export deals in the past two weeks. The US butter market is still very much overheated, but further out the prices are still trading with a big discount. We would expect the butter market to trade more stable.

Eucolait Event

We also know a lot of our partners are at the Eucolait event in Brussels today and tomorrow. Unfortunately we were not able to attend ourselves, but we think a lot of different market views will be in the same room the next two days.