Fonterra Milk Price Raised to $9.50/kgMS
As expected, Fonterra has lifted its 2025-26 forecast farmgate milk price mid-point to $9.50/kgMS.
“In view of the recent price surge, it is not surprising dairy markets wanted to catch their breath. WMP prices, for example, had spiked 35% over August and September,” says ASB senior rural economist Nathan Penny.
Whole milk powder (WMP) and skim milk powder (SMP) prices dipped 3.8% and 3.9%, respectively.
“The result was a touch weaker than expectations heading in. Futures market pricing hinted at a WMP fall in the 0% to 2% range prior to the auction.
“The price dip was broad-based, with seven out of eight products on offer recording price falls. Only butter milk powder recorded a rise (up 9.3%).
“From here, we expect prices to track largely sideways over coming auctions as markets wait for further confirmation of weakening NZ production.”
Key Results
AMF index down 1.0%, average price US$4,954/MT
Butter index down 0.3%, average price US$3,891/MT
BMP index up 9.3%, average price US$2,408/MT
Ched index down 2.3%, average price US$3,430/MT
LAC index down 9.7%, average price US$744/MT
RenCas index down 3.7%, average price US$6,574/MT
SMP index down 3.9%, average price US$2,209/MT
WMP index down 3.8%, average price US$2,681/MT
