BNZ senior economist Doug Steel said a genuine increase in demand for protein, particularly from China, was also fuelling the price bonanza, which saw the average price on Fonterra's GlobalDairy
Trade auction this week surge 14.2 per cent on the last auction.
Not exact matches
But he stopped short of saying what he believed the price should be, saying next
week's global dairy
trade auction could alter his calculation.
It also helps explain why Fonterra has found it necessary to put more product onto the global dairy
trade auctions during recent
weeks.
Trade - weighted prices for all products and across all contracts at yesterday's Global Dairy
Trade auction were down 6.7 per cent from the previous event two
weeks ago.
In this bountiful era of REIT wreckage, with liquidity having virtually disappeared from the mortgage market, the
auction rate securities market, and last
week, even the municipal bond market, it is helpful to be reminded of the irrationality that can sometimes rule daily
trading gyrations.
The Economist summarizes London's Asia
week shows and sales as the leading dealers in the Chinese art
trade and three major
auction houses held strong sales.
The sales that began last
week at
auction houses in New York, with more than $ 2.1 billion of art on offer, are the biggest test of the
trade since stocks tumbled in August and September, unnerving investors.
The bitcoin price was unaffected by the latest USMS
auction,
trading in the $ 370s all
week.
Digital Currency Group's Genesis
Trading and bitcoin hedge fund Binary Financial are set to participate in a government
auction of bitcoin this
week.