CSB - Stu Davison - GDT

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Episode Transcript

Speaker 1 (00:00):
From the cricket field to the cows shed. It's the
Country Sport Breakfast with Brian Kelly on gold Sport.

Speaker 2 (00:06):
It's seven nineteen here on the Country Sport Breakfast on
gold Sport. Time to head to Chicago.

Speaker 3 (00:10):
Now out of Darry Insights, Stuve Davidson joined us with
some positive news on the global dairy trade auction front.

Speaker 1 (00:17):
Stu, good morning, Good morning, Yeah, and a very positive result.
Can't complain about three positives in a row.

Speaker 2 (00:23):
No, so this one not a big one, A plus
one point two percent? What do you put it down to?
First off?

Speaker 1 (00:31):
Yeah, plus one point two percent and really notable to
explain that there was mostly due to homework powder up
four point one percent, with the bulk of the rest
of the auction down pretty negative. So a lot of
it was to do with the ongoing homwk powder squeeze
was seen in China at the moment too, So China
and they're pushing their way around on the homework powder front.

Speaker 2 (00:50):
Yeah.

Speaker 3 (00:51):
I was looking at all the other individuals and really
there's only what only one other plus in there, and
that was for lactos.

Speaker 1 (00:58):
Yeah, exactly, and lacto only just got back on the
board too. So the previous ouction that didn't even print
a price, so to see it up is good, but
it's still a well, well a long way below normal prices.
So yeah, the negatives across the root of the market
sort of explains what's going on in the wider dairy market.
You know, prices have rallied so quickly. We're seeing buyers
a little bit hesitant to keep purchasing at these prices,

(01:21):
except for China, who's continuing to really battle away at
these humble padd of prices. Is they're short of product
at the moment.

Speaker 2 (01:27):
Quite a big drop for butter, wasn't it.

Speaker 1 (01:30):
Yes, a big drop for butter. But again, you know,
we've been at pretty lofty prices for butter for the
last six months. We're at the end of the current year,
and obviously all Christmas buying has been wrapped up and
done for the year, so buyers are now starting to
buy for the new year. We expected prices to sort
of slide a little bit considering the record prices we've
been printing recently, so it is down. It's not perfect,

(01:52):
but Alex, be honest, six hundred bucks for butter. That's
pretty handy considering we've been in the past.

Speaker 2 (01:58):
So who were the big bidders coming in? I mean,
is the Asian market there?

Speaker 3 (02:02):
Oh?

Speaker 1 (02:02):
Yeah, the Asian market was there in force again, So
China was the biggest buyer across the whole auction. They
took the most butter, they took the most comic powder,
the most skim, and you know, pretty much there or
thereabouts for everything else. And in South and East Asia
Oceani were there for the rest of it, roughly about
a third for those buyers. And then the Middle East
were actually back for a good chunk as well. They
were reasonably absent to the previous auction, so they were

(02:24):
there again this auction. So it's good to see them
come back. But again those last two regions, the Middle
East and Southeast Asia, are very price sensitive, and we're
hearing from sellers and buyers across the across the market
that you know, these prices aren't as attractive as they'd like,
and you know they're pretty hesitant to participate fully at
these prices. So a little bit of concern on the market.

Speaker 2 (02:44):
All right, what have we got one more before Christmas?

Speaker 3 (02:46):
Is it?

Speaker 2 (02:46):
One more auction?

Speaker 1 (02:47):
One more auction? And then we've got a three week break,
so they let us have a bit of a breather
this year, which is nice. And that'll wrap up twenty
twenty four's GDT auctions and then we'll start twenty five
off on the seventh of January and I'm sure that'll
be a bit of fireworks.

Speaker 3 (03:00):
Fantastic great to chats. Do have a great week and
we'll talking you in soon before Christmas.

Speaker 1 (03:05):
Maybe always great at chat.

Speaker 3 (03:06):
Thanks Steve Davison joining us out of their Insights out
of Chicago with