Tuesday, 10 December 2019 09:55

Dairy prices may climb further

Written by  Staff Reporters
ASB rural economist Nathan Penny. ASB rural economist Nathan Penny.

ASB rural economist Nathan Penny says the bank sees an upside to last week’s milk price forecast from Fonterra.

Read: Fonterra's latest milk collection figures confirm that the global dairy market is tipped slightly in favour of demand.

“We’ll be watching NZ dairy production data closely over November and December for clues as to the direction of dairy prices over the remainder of 2019 and early 2020,” he said.

Overall auction prices have lifted by about 8% since the start of spring, with the price lift coinciding with softening NZ production growth. 

Following these price moves, ASB already revised its milk price forecast higher by 50 cents to $7.50/kgMS two weeks ago. 

“Looking ahead, we suspect that dairy auction prices may have further to climb,” he said.

“Recall that NZ October production was 1.5% down on October 2018 and, anecdotally, this production weakness has intensified over November.

“Meanwhile, EU and US production growth is also soft, with annual production only marginally above year-ago levels in both regions.”

More like this

A great outcome - Hurrell

Fonterra chief executive Miles Hurrell says the sale of the co-op’s consumer and associated businesses to Lactalis represents a great outcome for the co-op.

Featured

Poultry industry, Govt sign landmark biosecurity deal

The Government has struck a deal with New Zealand's poultry industry, agreeing how they will jointly prepare for and respond to exotic poultry diseases, including any possible outbreak of high pathogenicity avian influenza (HPAI).

National

Machinery & Products

» Latest Print Issues Online

Milking It

Dreams aren't plans

OPINION: Milking It reckons if you're National, looking at recent polls, the dream scenario is that the elusive economic recovery…

Fatberg

OPINION: Sydney has a $12 million milk disposal problem.

» Connect with Dairy News

» eNewsletter

Subscribe to our weekly newsletter