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Doug Steel.
The GDT auction last week was close to expectations, and even included a slightly positive surprise with a 5.5% jump in skim milk powder prices, says BNZ senior economist Doug Steel.
Overall dairy prices eased 0.6%.
“This was close to expectations,” Steel told Dairy News. “If anything, the decline was not quite as big as the indicators intimated. The GDT Price Index is up 12.2% year-to-date and 9.8% on a year ago.”
Whole milk powder (WMP) prices fell 0.8%, to an average price of $US3232/t.
BNZ is now forecasting a $6.30/kgMS milk price for the 2017-18 season, but Steel says something like $6.40 or $6.50/kgMS is easily within the realms of possibility.
“Ultimately, the final figure will depend on what effective exchange rate Fonterra has managed to achieve.
“Fonterra is due to provide its half year update later this month, where the co-op will provide its latest guidance for milk price (which sits at $6.40/kgMS) as well as for earnings and dividend.”
With the focus shifting to the next season, Steel says the general view is that dairy prices will ease later in 2018. This is based on expanding supply, particularly out of the EU, and the influence from the EU intervention programme.
“However, there are a few global weather issues now challenging this thinking, including cold weather across parts of Europe [that could materially restrict near term production],” he says.
“Drought in Argentina and dry in parts of the US that, combined, have seen grain prices push higher over recent weeks are also worth watching.
Global Dairy Trade (GDT) and Arla Foods have announced that Arla will begin offering European-sourced skim milk powder (SMP) on GDT Pulse from May 2025 as part of an extension to the GDT Pulse pilot.
Following several years of pain, farmers and growers are facing a decent upswing in commodity prices, say economists.
Dairy and beef farmers could be eligible for lower interest lending options for financing Halter on their farms, with ANZ, ASB and BNZ now offering a pathway to sustainability loans for New Zealand’s largest virtual fencing provider.
A significant rise in Global Dairy Trade (GDT) auction last week has prompted one bank to lift its forecast milk price for the season to above Fonterra's mid-point.
Whole milk powder prices on Global Dairy Trade (GDT) remains above long run averages and a $10/kgMS milk price for the season remains on the card, says ASB senior economist Chris Tennent-Brown.
Education union NZEI Te Riu Roa says that while educators will support the Government’s investment in learning support, they’re likely to be disappointed that it has been paid for by defunding expert teachers.
The Government says it is sharpening its focus and support for the food and fibre industry in Budget 2025.
A European Union regulation ensuring that the products its citizens consume do not contribute to deforestation or forest degradation worldwide threatens $200m of New Zealand beef and leather exports.
A long-acting, controlled- release capsule designed to protect ewes from internal parasites during the lambing period is back on the market following a comprehensive reassessment.
Healthcare appears to be the big winner in this year's budget as agriculture and environment miss out.
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