Tuesday, 28 June 2022 09:55

Prices to remain high

Written by  Sudesh Kissun
Westpac senior agricultural economist Nathan Penny. Westpac senior agricultural economist Nathan Penny.

Westpac senior agricultural economist Nathan Penny expects prices to remain elevated as global supply remains very tight.

However, the bank is sticking to its forecast milk price of $9.25/kgMS for this season.

Penny says, at some stage, they anticipate that Covid restrictions in China will ease further and take dairy demand higher as a result.

"At that time, global dairy prices are likely to get a further boost."

However, he says last week's Global Dairy Trade auction result is consistent with its current forecast.

Fonterra has a wide ranging forecast milk for the season - $8.25/kgMS to $9.75/kgMS.

Penny notes that the mixed nature of the result suggests prices are in a holding pattern.

"At the last auction the market factored in better Covid news in terms of easing restrictions in China.

"But with no fresh news to digest on that front, the price moves reflected changes in product mix rather than any underlying factors."

More like this

Big future for hort

The horticulture sector is punching above its weight when it comes to export revenue, according to Westpac industry analyst Paul Clark.

Editorial: Celebrating dairy

OPINION: While dairy farmers were busy milking cows last Wednesday morning, 150 leaders and stakeholders of the industry gathered at Parliament over breakfast to celebrate their achievements.

Featured

Massey Research Field Day attracts huge interest

More than 200 people turned out on Thursday, November 21 to see what progress has been made on one of NZ's biggest and most comprehensive agriculture research programmes on regenerative agriculture.

Expo set to wow again

Stellar speakers, top-notch trade sites, innovation, technology and connections are all on offer at the 2025 East Coast Farming Expo being once again hosted in Wairoa in February.

A year of global challenges

As a guest of the Italian Trade Association, Rural News Group Machinery Editor Mark Daniel took the opportunity to make an early November dash to Bologna to the 46th EIMA exhibition.

National

OSPRI's costly software upgrade

Animal disease management agency OSPRI has announced sweeping governance changes as it seeks to recover from the expensive failure of…

Machinery & Products

BA Pumps expand

Cambridge based BA Pumps & Sprayers, specialists in New Zealand-made spraying equipment, has acquired Tokoroa Engineering’s product range, including the…

Entries open for innovation award

Fieldays and its renowned Innovation Awards are celebrating their 57th year, marking a longstanding tradition in the agricultural calendar, with…

» Latest Print Issues Online

Milking It

Chinese strategy

OPINION: Fonterra may have sold its dairy farms in China but the appetite for collaboration with the country remains strong.

Not fair

OPINION: The Listener's latest piece on winter grazing among Southland dairy farmers leaves much to be desired.

» Connect with Dairy News

» eNewsletter

Subscribe to our weekly newsletter