NZ: Surprise increase in dairy auction - TDS

Analysts at TDS notes that the New Zealand’s dairy auction results overnight showed a  surprise increase in whole milk powder (+2.9%) to $2,855/t while the average GDT price rose +1.7%.

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“The rise might be attributed to demand from Latin America seeking alternatives to Argentinian products given the floods. Average prices from the GDT index increased by +1.7%. The RBNZ cash rate decision is tomorrow and the universal expectation is for the cash rate to remain unchanged at 1.75%.”