GlobalDairyTrade price index was unchanged - ANZ

Analysts at ANZ explained that despite derivatives pointing to a small lift, the GlobalDairyTrade price index was unchanged overnight with mixed results at the subcomponent level: a 0.1% rise in whole milk powder, a 1.2% lift in anhydrous milk fat and a 1.3% rise in cheddar broadly offset a 0.3% fall in skim milk powder and a 3.2% drop in butter prices. 

Key Quotes:

"With Chinese inventories at a decent level at present, and New Zealand production starting the 2018/19 season on a solid note, buyers appear patient currently."

"However, that could change as seasonal production ramps up and the possibility of an El Niño event hampering production becomes a factor (note: not all El Niño events are the same). That said, with trade tensions threatening global growth there are offsetting downside risks on the demand side too."