Last week Rabobank released its quarterly dairy report saying “the strength of the recent rally is hard to justify on current fundamentals.” It came out the day before the latest GDT event, at which the index dived 8.8%. Rabobank’s global reach and status means most GDT bidders would have read the report. The expectation for a correction was set, and sure enough, the market delivered. Of course, the fundamentals were out there anyway so prices were likely to ease regardless of the report, but probably not nearly as sharply. Thanks Rabo: great report; lousy timing.
-
font size
decrease font size
increase font size
Expectation is a powerful force in commodity markets. Show buyers a correction is due and they’ll reduce demand, precipitating the predicted fall.
More like this
It's all about economics
OPINION: According to media reports, the eye-watering price of butter has prompted Finance Minister Nicola Willis to ask for a 'please explain' from her former employer Fonterra.
Red line on dairy
OPINION: As India negotiates to open its borders to more global products, dairy is proving a sticky issue.
Farmland security
OPINION: Paranoia about foreigners is at an all-time high in the US and attention is now turning to foreign-owned farmland.
Cuddling cows
OPINION: Years of floods and low food prices have driven a dairy farm in England's northeast to stop milking its cows and instead charge visitors to cuddle them.
Popular Reads
Two milk processing plants changing hands
Two large milk processing plants in New Zealand are changing hands.
Waikato dairy farmers enter 2025 regional council elections
Two Waikato dairy farmers and Federated Farmers leaders have thrown their hats in the ring for this year's Waikato Regional…Farmer anger over Joy's social media post
A comment by outspoken academic Dr Mike Joy suggesting that dairy industry leaders should be hanged for nitrate contamination of…Fonterra consumer business sale price jumps to $4.22b
The sale price of Fonterra’s global consumer and associated businesses to the world’s largest dairy company Lactalis has risen to…Open Country finalises acquisition of Miraka Limited
Open Country Dairy has finalised a deal to acquire 100% of Miraka.Featured
Phoebe Scherer named 2025 Young Grower of the Year
Phoebe Scherer, a technical manager from the Bay of Plenty, has won the 2025 Young Grower of the Year national title.
Fencing excellence celebrated
The Fencing Contractors Association of New Zealand (FCANZ) celebrated the best of the best at the 2025 Fencing Industry Awards, providing the opportunity to honour both rising talent and industry stalwarts.
Boutique cheesemaker Cranky Goat in voluntary liquidation
Award-winning boutique cheese company, Cranky Goat Ltd has gone into voluntary liquidation.
National Pest Management Plan for TB seeks feedback
As an independent review of the National Pest Management Plan for TB finds the goal of complete eradication by 2055 is still valide, feedback is being sought on how to finish the job.
B+LNZ launches AI assistant for farmers
Beef + Lamb New Zealand has launched an AI-powered digital assistant to help farmers using the B+LNZ Knowledge Hub to create tailored answers and resources for their farming businesses.
Long shot research by forage breeder nails pasture success
A tiny organism from the arid mountains of mainland Greece is facilitating a new way of growing healthier animals on farms across New Zealand.
National
AgFirst marks 30 years of agribusiness advice
AgFirst, New Zealand's largest independent agribusiness consultancy, is turning 30 - celebrating three decades of "trusted advice, practical solutions, and…
Strong production, tested demand send milk prices crashing
Strong global milk production and rebalancing of demand among key buyers has delivered one of the biggest drops in whole…ACC urges safety during spring calving
Dairy farmers around the country are into the busy spring calving period.Rural NZ faces shift as copper network deregulation looms
Rural communities say support is required to shift away from the copper network that has been the only source of…Chris Lewis ready for another term
After serving three as a DairyNZ director, Waikato farmer Chris Lewis is ready for another term.Machinery & Products
Revamp for Valtra's A Series models
Valtra has recently announced upgrades to the fifth generation A Series, offered to the New Zealand market in the four…
