increase font size
The Global Dairy Trade lift overnight of 2.6% is broadly in line with expectations, says ASB rural economist Nathan Guy.
The overnight lift was the third auction out of the last four to record a price lift.
However, by product the auction was more mixed relative to expectations, he says in his 'Quickview' outline.
"Key WMP prices rose bang in line with expectations, while the anticipated jump in SMP prices was absent (futures prices had hinted at a lift in excess of 5%). Instead, SMP prices actually fell 0.9%.
"Elsewhere, butter milk powder (up 16.2%) and anhydrous milk fat (up 4.9%) regained some of their recently lost ground. Butter prices posted a 3% increase, while casein (up 0.3%) also lifted marginally. Cheddar (down 0.8%) was the other main product we monitor to post a fall."
In terms of the price outlook, the auction result is somewhat moot given this was the smallest auction for the year, he says. ASB is sticking to its $3.90/kgMS forecast for 2015/16.
Attention now quickly turns to 2016/17. Fonterra provides its new season forecast next Thursday. And while we expect the milk price to ultimately end at $6/kgMS, Fonterra's starting point forecast for the season will be much lower.
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.
OPINION: People have criticised Christopher Luxon for the time he’s taken to appoint a new chief science advisor.
A new Indonesian school milk programme is expected to significantly increase the country's total dairy consumption, creating opportunities for New Zealand and other global dairy players.
Fonterra has invested in a new effluent pond mobile dosing service to support farmers to reduce emissions and make progress towards its on-farm emissions reductions target.
It was again time to celebrate a successful year at Waikato's Westmorland Estate Limited.
Federated Farmers says the farming sector has been unable to effectively address quad bike safety.
A highly experienced agricultural scientist with specialist knowledge of the dairy sector is the Prime Minister's new Chief Science Advisor.
OPINION: On the 2nd of May, Agriculture Minister Todd McClay announced that the 'government remains on track to ban full…
OPINION: It's not happening as fast as the greenies would like - they actually want all livestock other than Muscovy…
