Tuesday, 28 May 2024 10:55

A good start

Written by  Staff Reporters
Westpac chief economist Kelly Eckhold. Westpac chief economist Kelly Eckhold.

The final Global Dairy Trade (GDT) auction for the 2023-24 season augurs well the forecast milk price for the new season.

While the banks are forecasting between $8.35 to $8.40/kgMS, Fonterra later this week, its forecast range for the season starting June 1.

Last week's GDT delivered good news: while the price index rose 3.3%, Chinese buyers returned after pulling back in the earlier May auction. Also, whole milk powder prices rose 2.9% to US$3,408/metric tonne.

Westpac chief economist Kelly Eckhold noted that auction was "another very strong one with gains across the board".

"All categories rose and wrong-footed futures markets, which again saw a much flatter result," says Eckhold.

"Chinese buyers returned this time after pulling back in the early May auction. Overall prices are now 10 per cent or so above their long-term averages. We can certainly see upside risk building to our milk price forecast of $8.40/kgMS for the 2024/25 season."

ASB senior economist Chris Tennent-Brown believes farmers can hope for a farmgate milk price in the top half of Fonterra's guidance range ($7.50-$8.10/kgMS) this year.

"We remain comfortable with our $8.35/kgMS forecast."

More like this

Dairy prices on the rise

Dairy prices have risen for five consecutive Global Dairy Trade (GDT) auctions, which augurs well for this season’s milk price.

$8 final milk price likely

An $8/kgMS farm gate milk price is still on the cards with less than six weeks left to run this season.


Another solar farm on the cards

Solar generation company, Lodestone Energy is partnering with Haldon Station, located in the heart of the Mackenzie District, to build and operate a 220 MW utility-scale solar farm.


Machinery & Products

Blender backs agri-tech startups

Product design and development consultant Blender says as part of its commitment to fostering innovation in agriculture and technology, it’s…

» Latest Print Issues Online

Milking It

Rural travel

OPINION: It seems ‘rural travel’ is getting very expensive these days.

Oat dear!

OPINION: A global plant-based milk company has confirmed it is not going ahead with its first UK factory.

» Connect with Dairy News

» eNewsletter

Subscribe to our weekly newsletter