Returns lift, costs down - DairyNZ
The outlook for dairy farmers this season has improved, especially when compared to forecasts only six months ago, according to DairyNZ.
ASB is sticking with its 2016/17 milk price forecasts of $6/kgMS, with the Global Dairy Trade overall price index remaining unchanged overnight.
"However, we note that to maintain our forecast, prices will need to rise materially over coming months, particularly as peak auction volumes are on offer for the season over the coming three months or so," says ASB rural economist Nathan Penny.
Last night's overall result was in line with expectations, says Penny. Butter prices dipped 5%, while SMP and cheddar also fell circa 1%. In contrast, Anhydrous Milk Fat and casein prices were up a touch.
"From here, and with the market focus shifting away from Brexit, dairy fundamentals should begin to drive price movements once again.
"On that front, we continue to look to data that support or otherwise our view that global supply is tightening. For example, Fonterra's NZ collections were down 10% in June versus June 2015, although it is still early days in the NZ production season."
Key Global Dairy Trade Event 168 results:
AMF index up 0.2%, average price US$3,628/MT
Butter index down 5.0%, average price US$2,687/MT
BMP index down 0.5%, average price US$1,565/MT
Ched index down 1.1%, average price US$2,886/MT
LAC index down 4.0%, average price US$721/MT
RenCas index up 0.4%, average price US$5,286/MT
SMP index down 1.1%, average price US$1,927/MT
WMP index up 1.9%, average price US$2,079/MT
Shipping disruption caused by Houthi rebels in the Red Sea has so far not impacted fertiliser prices or supply on farm.
The opportunity to spend more time on farm while providing a dedicated service for shareholders attracted new environmental manager Ben Howden to work for Waimakariri Irrigation Limited (WIL).
Federated Farmers claims that the Otago Regional Council is charging ahead unnecessarily with piling more regulation on rural communities.
Dairy sheep and goat farmers are being told to reduce milk supply as processors face a slump in global demand for their products.
OPINION: We have good friends from way back who had lived in one of our major cities for many years.
Listed Canterbury milk processor Synlait’s shares have been placed in a trading halt.
OPINION: European farmers are going to extreme lengths to have their message heard.
OPINION: The hustle and bustle of one of Bangkok's most popular fast food outlets may feel a world away from…