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THE ASB has held its milk price forecast at $5.80kg/MS for the 2014/15 season after a mixed bag in the overnight GDT auction.
WMP (NZ's most important product) picked up 3.4%, but overall prices were down 0.6%, says ASB rural economist Nathan Penny in a statement.
Higher prices for later-dated contracts hint at support for prices later in the season, he says. All up though, it is difficult to draw many conclusions from this auction – as a result, our milk price forecast for the 2014/15 season is unchanged at $5.80/kg of milk solids.
Overall prices now stand 39.2% lower than a year ago, he says. WMP prices are down further, recording a 45.4% fall since this time last year. Since the most recent peak in February of this year, overall prices are down 41%.
SMP posted the largest fall, dropping 12% overnight. Cheddar also fell nearly 8%, while BMP and casein also posted small falls. In addition to WMP, AMF and butter posted rises of 3.6% and 4.9%, respectively.
Forward prices continue to point to future price support. For example, near-dated WMP contracts are at or under US$2,800/MT, while later-dated contracts are closer to US$2,900/MT. SMP contract prices show a similar pattern.
"There were no clear signs of Russian purchases in the auction. Russia's key imports are butter and cheese and with butter and cheese prices up and down, respectively, we have no clear indication either way on Russian auction participation."
Buoyed by strong forecasts for milk prices and a renewed demand for dairy assets, the South Island rural real estate market has begun the year with positive momentum, according to Colliers.
A global trade war beckons, which is bad news for a small open economy like New Zealand, warns Mark Smith ASB senior economist.
ASB's new head of food and fibre, Kristen Ashby, believes that there’s “heaps of opportunity” in the agriculture sector.
Fonterra farmers are pleased with their co-operative's interim results, says Co-operative Council chair John Stevenson.
Farmgate milk price could stay above $10/kgMS for two consecutive seasons, however, Fonterra is cautioning farmer shareholders to be wary.
Among the regular exhibitors at last month’s South Island Agricultural Field Days, the one that arguably takes the most intensive preparation every time is the PGG Wrightson Seeds site.
Two high producing Canterbury dairy farmers are moving to blended stockfeed supplements fed in-shed for a number of reasons, not the least of which is to boost protein levels, which they can’t achieve through pasture under the region’s nitrogen limit of 190kg/ha.
Buoyed by strong forecasts for milk prices and a renewed demand for dairy assets, the South Island rural real estate market has begun the year with positive momentum, according to Colliers.
The six young cattle breeders participating in the inaugural Holstein Friesian NZ young breeder development programme have completed their first event of the year.
New Zealand feed producers are being encouraged to boost staff training to maintain efficiency and product quality.
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