Bank helps clients reduce emissions
Rabobank says climate change creates both risks and opportunities for the bank and its clients and that the food and agriculture sector needs to recognise the potential for both.
The Global Dairy Trade (GDT) price index is at a two-year low, but there is some good news ahead, says Rabobank dairy analyst Emma Higgins.
She notes that whole milk powder price for shipments in C2 (shipment date December 2018) lifted marginally, by 1.1%.
Higgins says this suggests Chinese buyers are procuring stock to land onshore in China to receive the lower tariff rate; a set volume of WMP and SMP will enter into China from 1 Jan 2019 free of tariffs – after the quota is reached, a 10% tariff rate will apply.
WMP price dropped 1.2%, to US$2,753/tonne. The GDT price index dropped 1.9% to US$2,901/tonne: the ninth consecutive fall or flat result and the lowest result in almost exactly two years.
“The general theme remains: The anticipation of a bumper season from New Zealand and product on offer through the GDT Events increasing in line with those expectations has provided no procurement urgency and prices have slipped lower as a result,” says Higgins.
Skim milk powder price softened just 0.3% to US$1,982/tonne.
Higgins says SMP is one of the few Oceania commodities notat a discount to Northern Hemisphere product, with the bulk of SMP already committed to buyers.
Aging SMP stocks remain burdensome in Europe, India has tagged a stockpile of SMP for export (helped by incentives for disposal onto export markets) and US non-fat dry milk stocks are higher than the prior year. “But – some potential good news for SMP hit the wires yesterday. As part of the USMCA trade agreement (replacing the old NAFTA) Canada has committed to limiting surplus SMP onto global markets. This is helpful in a market overloaded with surplus aging SMP,” she says.
Falling fat prices saw butter move lower by 6% to US$4,016/tonne, while anhydrous milk fat slipped 4.4% to US$5,069/tonne.
Higgins says a two-tiered global butter market has appeared: Oceania butter prices have recalibrated back to levels not seen in two years, yet European butter prices remain elevated.
‘It’s important to note that fat fundamentals haven’t significantly shifted: dairy fat demand is still robust at both foodservice and retail level.
“Fat stocks still remain low globally but the anticipated short-term lift in NZ milk is enough to see softer prices. Further, fat-filled milk powder with ample volumes of SMP could continue to provide pricing competition in the short term.”
Higgins anticipates butter prices to remain elevated over the next 6 – 12 months – although peak prices have passed.
South Waikato farm manager Ben Purua’s amazing transformation from gang life to milking cows was rewarded with the Ahuwhenua Young Maori Farmer award last night.
Bankers have been making record profits in the last few years, but those aren’t the only records they’ve been breaking, says Federated Farmers vice president Richard McIntyre.
The 2023-24 season has been a roller coaster ride for Waikato dairy farmers, according to Federated Farmers dairy section chair, Mathew Zonderop.
Ministry for Primary Industries (MPI) director general Ray Smith says job cuts announced this morning will not impact the way the Ministry is organised or merge business units.
Scales Corporation is acquiring a number of orchard assets from Bostock Group.
Family and solidarity shone through at the 75 years of Ferdon sale in Otorohanga last month.
OPINION: Scientists claim to have found a new way to make a substitute for cow's milk that could have a…
OPINION: The Irish have come up with a novel way to measure cow belching, which is said to account for…