Displaying items by tag: BNZ

With production up 6.5% on last year for the peak of the season, a downward adjustment in Fonterra’s milk price will not be surprising, says BNZ senior economic Doug Steel.

The Global Dairy Trade had its eighth consecutive fall last week putting more downward pressure on Fonterra’s $6.75/kgMS milk price forecast, says BNZ senior economist Doug Steel.

With dairy prices down nearly 13% below levels of a year ago, this adds to the downside risk to Fonterra’s newly minted $6.75/kgMS milk price forecast, says BNZ senior economist Doug Steel.

Fonterra's $7/kgMS opening milk price is at the top end of the range seen by market followers and analysts.

Economists are optimistic of a small rise in this season’s farmgate milk price.

The GDT auction last week was close to expectations, and even included a slightly positive surprise with a 5.5% jump in skim milk powder prices, says BNZ senior economist Doug Steel.

Farmer confidence has fallen sharply over recent months. 

Fonterra’s forecast milk price of $6.40/kgMS looks a lot more achievable now, according to BNZ senior economist Doug Steel.

Dry conditions in the early part of summer are suppressing milk production and squeezing dairy prices higher, says BNZ senior economist research Doug Steel.

The risk of drought in New Zealand is rising, says BNZ’s senior economist Doug Steel.