fbpx
Print this page
Tuesday, 24 March 2020 10:13

$7-plus still on the cards

Written by  Staff Reporters
Westpac markets strategist Imre Speizer. Westpac markets strategist Imre Speizer.

Despite four consecutive drops in Global Dairy Trade (GDT) prices, analysts are sticking with a payout of around $7.20/kgMS for this season.

Westpac markets strategist Imre Speizer says the futures market for 2019-20 farmgate milk price remains stuck at $7.20/kg, where it has been since early February.

Speizer notes that this unsurprising given 80% of the season’s production volumes, as well as most sales, are known.

“That is in line with our own forecast for this season of $7.20,” he says.

Rabobank analyst Emma Higgins anticipates a milk price $7.35/kgMS, a decline of 35c.

Last week Fonterra reaffirmed its milk price range of $7 to $7.60/kgMS.

For the 2020/21 milk price, futures are predicting a price of $6.20/kgMS, from a pre-virus peak of $7.30 in January.

Both Westpac and Rabobank are reviewing their 2020-21 forecast prices and will report in the coming weeks.

More like this

M.I.A.

M.I.A.

OPINION: The previous government spent too much during the Covid-19 pandemic, despite warnings from officials, according to a briefing released by the Treasury.

Gaslight much?

OPINION: Labour leader Chris 'Chippy' Hipkins is carrying on the world-class gaslighting of the nation that he and his cohorts started after their disastrous Covid response; now trying to undermine the Covid inquiry to protect his own backside.

Popular Reads

Featured

Rural contractors call for overhaul of ag vehicle rules

Following a recent overweight incursion that saw a Mid-Canterbury contractor cop a $12,150 fine, the rural contracting industry is calling time on what they consider to be outdated and unworkable regulations regarding weight and dimensions that they say are impeding their businesses.

NZ seeks certainty on US tariff, says McClay

Trade Minister Todd McClay says his officials plan to meet their US counterparts every month from now on to better understand how the 15% tariff issue there will play out, and try and get some certainty there for our exporters about the future.

Trial shows benefits of spring nitrogen use

A landmark New Zealand trial has confirmed what many farmers have long suspected - that strategic spring nitrogen use not only boosts pasture growth but delivers measurable gains in lamb growth and ewe condition.

Eric Roy: Championing the pork industry

It was recently announced that former MP and Southland farmer Eric Roy has stepped down of New Zealand Pork after seven years. Leo Argent talks with Eric about his time at the organisation and what the future may hold.

National

Machinery & Products

JDLink Boost for NZ farms

JDLink Boost for NZ farms

Connectivity is widely recognised as one of the biggest challenges facing farmers, but it is now being overcome through the…

New generation Defender HD11

The all-new 2026 Can-Am Defender HD11 looks likely to raise the bar in the highly competitive side-by-side category.