Tuesday, 24 March 2020 10:13

$7-plus still on the cards

Written by  Staff Reporters
Westpac markets strategist Imre Speizer. Westpac markets strategist Imre Speizer.

Despite four consecutive drops in Global Dairy Trade (GDT) prices, analysts are sticking with a payout of around $7.20/kgMS for this season.

Westpac markets strategist Imre Speizer says the futures market for 2019-20 farmgate milk price remains stuck at $7.20/kg, where it has been since early February.

Speizer notes that this unsurprising given 80% of the season’s production volumes, as well as most sales, are known.

“That is in line with our own forecast for this season of $7.20,” he says.

Rabobank analyst Emma Higgins anticipates a milk price $7.35/kgMS, a decline of 35c.

Last week Fonterra reaffirmed its milk price range of $7 to $7.60/kgMS.

For the 2020/21 milk price, futures are predicting a price of $6.20/kgMS, from a pre-virus peak of $7.30 in January.

Both Westpac and Rabobank are reviewing their 2020-21 forecast prices and will report in the coming weeks.

More like this

Every exhibitor with something valuable to offer for farmers

OPINION: Welcome to the second annual NZ Dairy Expo at Matamata – an event created to bring together the best of the New Zealand dairy industry in a focused, grassroots environment where dairy farmers and rural professionals can meet, talk, compare products, and make smart decisions for their farms.

$10.25/kgMS milk price now in play

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.

$10 milk price still on

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.

Mixed results on GDT

The first Global Dairy Trade (GDT) auction drew mixed results, with drop in powder prices and lift in butter and cheeses.

Featured

Editorial: Time for common sense

OPINION: The case of four Canterbury high country stations facing costly and complex consent hearing processes highlights the dilemma facing the farming sector as the country transitions into a replacement for the Resource Management Act (RMA).

National

DairyNZ Farmers Forum underway

Over 300 farmers and rural professionals have gathered in Hamilton for the first DairyNZ Farmers Forum for this year.

Machinery & Products

Shearing legend hooked on CanAm

Sir David Fagan, world-renowned competitive sheep shearer with 642 shearing titles worldwide and a knighthood to his name, now runs…

50 years of tractor pull

This year, the Fieldays Tractor Pull, in association with PTS Logistics, mark a major milestone – 50 years of crowd-thrilling…

The Wrangler's birthday bash

It's the Wrangler Limited’s 30th birthday and to celebrate the milestone a prototype of the E Series Wrangler - a…

» Latest Print Issues Online

Milking It

Free speech

OPINION: The Free Speech Union is taking this one too far.

Drug survey

OPINION: New national data from The Drug Detection Agency (TDDA), a leading workplace drug tester, shows methamphetamine (meth) use is…

» Connect with Dairy News

» eNewsletter

Subscribe to our weekly newsletter