CSB - Stu Davison - GDT

The latest GDT results. 

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Episode Transcript

Speaker 1 (00:00):
Eighteen past seven here on the Country Sport Breakfast our Fortnite.
The Global Dairy Trade auctions happened overnight one hundred and
sixty two participating bidders, and they pushed it up. There's
a plus in front of us, joining us out of
Chicago's Global Dairy Trade. Stu Davidson, Morning, Stu, good morning.

Speaker 2 (00:17):
How are you getting on?

Speaker 1 (00:18):
Very well? Thank you a nice week plus one point nine.

Speaker 2 (00:22):
Can't complain about another squeeze result on the gendt it's
pretty positive and it doesn't look like it's going to
stop for a while.

Speaker 1 (00:29):
And that's on the back of a fortnite ago it
was four plus, so we surprised at another rise.

Speaker 2 (00:36):
No, we were actually picking it. So the futures market
were a little bit bolished before this. They actually probably
over over pushed. They were expecting a bit more. We
were a little bit hesitant just considering, you know, the
overall market doesn't like rapid price movements, but this big game,
especially if homppowder just talks to how short on Homonk
powder stocks the Chinese market is. So they were the

(00:57):
biggest buyer and they you know, continued that trend of
chasing prices higher as they try to secure as much
as they can.

Speaker 1 (01:03):
And they pushed that the whole milk to what three
point two percent.

Speaker 2 (01:06):
Yeah, exactly. Trading over three eight hundred on gut humok
powder is pretty handy. You know, the futures prices we're
expecting somewhere near there. But this is consistent with the
last pulse auction and the direction of the last auction,
so pretty positive in the scheme of things.

Speaker 1 (01:22):
So was it the Chinese market that was pushing everything
up or were there other bid is in there as
well that was pushing the momentum forward.

Speaker 2 (01:29):
Well, good question. So the Chinese were the biggest buyers
in the most active. Latin America are also very active
because there's a lack of milk from Argentina, Uruguay and Brazil,
and Brazil soaking up a lot of their product and
so they were in their fighting as well. But we
saw a little bit of you know, markets being pushed out.
So we saw one of the lowest results from the
Middle East, which is unsurprising where prices have moved to currently,

(01:52):
and Southeast Asia is also a bit lat bluster at
the moment too. As the prices get away from them,
they are very prost sensitive intend to slow buying down
as prices. So that's somewhat that difference between where fugures
were expecting what the price resulted on the physical and
you know, the Chinese buyers are driving everything right out's
a little bit hesitant, but you know it's pretty impressive.

Speaker 1 (02:12):
Nonetheless, Yeah, absolutely, I noticed a couple of minuses their
Cheddar minus three point one.

Speaker 2 (02:18):
Yeah, chatters down a little bit. Did have a big
run up on the last auction. But we've also got
to compare to that US Chiefs price at the moment,
which has come really off the boiler in the last
six weeks. A US Cheddar is still the cheapest even
with this price movement, but you know New Zealand ched
has still it through. Sorry at four eight hundred is
pretty handy compared to where we were six months ago.

Speaker 1 (02:37):
The Northern Hemisphere is going into its winter. I see
there's some pretty fair snowstorms and things sweeping through Europe.
Is that going to have an effect on the next
few options?

Speaker 2 (02:46):
Well, well, yeah, the market's looking to at so she
only to supply the difference that European market's not at
the moment. The milk prices in Europe are starting to
tickle a little bit higher here in spot prices, you know,
well above where it's been in the last two years,
which is impressive. But they also talk to the lack
of milk, so that you know, European winter and their
low period of milk will definitely help buyers come to

(03:08):
Oceani and get their requirements. But again, you know, the
market's just hot for milk vats and you know the
home powder markets purely what's happening in China, so it's
definitely playing into it. But there's a few other factors
in place too.

Speaker 1 (03:20):
And how Chicago looking this morning.

Speaker 2 (03:22):
Stew Chicago's nice and warm this morning. Actually, mate, we're
in the positives and we're about sixteen degrees c which
is very unusual for the slate November. But we've got
bets on when the snow's going to arrive and things
go under freezing for the rest of the winter, so
we're enjoying the warm while we.

Speaker 1 (03:38):
Can be Intesta. We'll do that. Indeed, we're talking a
couple of weeks to do nicely to join.

Speaker 2 (03:42):
Us, thank you so much, looking forward to it, mate,
Thank you

Speaker 1 (03:45):
Steve Davidson joining us out of Chicago,