NZD: Global dairy prices dropped 8% - TDS

FXStreet (Delhi) – Prashant Newnaha, Rates Strategist at TD Securities, notes that the global dairy prices fell 8% at the GDT auction yesterday, as milk futures had priced in.

Key Quotes

“This was the 3rd straight decline , prices declining 17% over the 3 auctions. In the FSR that was published a few weeks back, the RBNZ noted there is danger of a substantial rise in bad loans within this sector. The inflation hit miss yesterday and the weak auction overnight have lifted the odds of the RBNZ cutting next month back above 50%.”

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