NZ: Dairy prices continued to tread water – ANZ

New Zealand’s dairy prices continued to tread water overnight which suggests Fonterra is unlikely to downgrade its milk price forecast when its annual results are released next Monday, according to analysts at ANZ.

Key Quotes

“WMP performed better than expected, with the first contract (+5%) providing support. Lower NZ supply for August (-1.5% y/y) and a particular buyer perhaps being short, provided support. Milkfat prices continued to outperform, a trend that will continue into November. SMP declined as burdensome Norther Hemisphere supply and an end of European invention weighed on the market.”