Bank's desire to be part of the solution
ASB says the decision to sign on to the AgriZeroNZ joint venture came out of a wish to be a part of the solution.
The whole milk powder index rose to 1.5%, with an average price US$2,013/MT and skim milk powder was up 0.1%, to an average price US$1,721/MT.
ASB's chief economist Nick Tuffley says the whole milk price increases were concentrated in the near-dated delivery contracts, hinting at potential price pressure as the peak of NZ's season recedes. Skim powder prices were flat.
There were some very divergent price moves for other products, though mainly a continuation of recent volatility, he says. Cheese and anhydrous milk fat price prices gained sharply, reversing recent weakness, while butter milk powder prices gave back their recent recovery.
"We expect dairy prices to gradually trend up over the coming season as NZ and European production respond to the current low prices and as Chinese import demand recovers."
ASB is maintaining its 2015/16 and 2016/17 milk price forecasts at $3.90/kgMS and $6/kgMS, respectively.
Key Results of Event 161
AMF index up 6.7%, average price US$3,203/MT; Butter index down 2.0%, average price US$2,702/MT; BMP index down 8.2%, average price US$1,395/MT; Ched index up 10.5%, average price US$2,778/MT; LAC index up 6.2%, average price US$661/MT; RenCas index up 11.8%, average price US$4,438/MT
