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17 Apr 2019
NZ: Dairy prices edged 0.5% higher - Westpac
Anne Boniface, senior economist at Westpac, notes that the New Zealand’s dairy prices edged 0.5% higher in last night’s GlobalDairyTrade auction, with mixed outturns for individual products on offer.
Key Quotes
“The GlobalDairyTrade price index has now risen in ten consecutive auctions and is up 23% since the start of the year.”
“A feature of recent months has been renewed strength in fats prices and this continued in last night’s auction. AMF prices are now up 19% since the start of the year and 34% from their November lows, while butter prices have risen an even more impressive 36% this year and are 52% above their November 2018 lows. While prices for both are below the record levels they reached in 2017, demand appears to be remaining robust even at these levels.”
“With not long to go until the end of the New Zealand dairy season at the end of May, we continue to see a little update risk to our current season milk price forecast of $6.40.”