$10/kgMS milk price tipped for strong 2025/26 season start
The 2025-26 season is set to start on a high and a $10/kgMS opening forecast milk price isn't being ruled out.
The gap is closing between 2019 season and 2018 season prices, says ASB senior rural economist Nathan Penny.
In his weekly commodities report, Penny noted that the last 18 months or so have been stellar for lamb prices.
But lamb prices, so far over 2019, are hinting that they are running out of steam, he says.
Lamb prices opened 2019 at $7.20/kg, some 45c/kg lower than where they ended 2018. From the peak price of $8.43/kg back in September, the per kg price has now fallen $1.23/kg (or around 15%).
“This fall is a little more than we expected at this stage,” says Penny.
“The average fall over the past five years from the spring peak to autumn low is around $1.20kg. In other words, the fall to date has already exceeded the average fall with another two or so months before prices usually bottom out.
“Still at $7.20/kg, lamb prices remain healthy. Nonetheless, the steepness of the recent fall warrants a wary eye on lamb prices over the next month or two. In particular, we will be monitoring closely how Chinese lamb demand develops given the broader slowing in the Chinese economy.”
A record $10/kgMS opening forecast milk price for the new season means more money into Fonterra farmers pockets early, says Federated Farmers dairy chair Richard McIntyre.
Associate Agriculture Minister Andrew Hoggard says the consenting experience facing some high-country Canterbury sheep and beef farms is "bloody tragic" and vindicates the Government's move to abolish the Resource Management Act (RMA).
Farmers appear to be backing the Government's recent Resource Management Act (RMA) reforms announcement.
For the first time, all the big names in agricultural drone technology are being brought together under one marquee at the National Fieldays.
Fonterra has announced an improved third quarter performance – with a profit after tax of $1.15 billion, up $119 million on the same period last year.
The Fieldays Innovation Awards competition has attracted a diverse and impressive array of innovations from across the primary industries, highlighting the growing importance of technology shaping the future of farming.
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