NZ: Firm dairy prices anticipated - ANZ

Analysts at ANZ are keeping their dairy price forecasts unchanged at $6.40/kg MS this season and $7.30 next.

Key Quotes

“Dairy markets have strengthened over the past six months on the back of improved returns for dairy commodities and a softer New Zealand dollar.”

“Fonterra is on track to finalise its milk price for the 2018/19 season within its current forecast guidance range of $6.30-$6.60/kg milksolid (MS). Our forecast for this season remains at $6.40/kg MS.”

“Stronger returns are forecast for the 2019/20 season. Our forecast for next season remains at $7.30/kg MS. This price assumes dairy commodity prices will hold near current levels for the remainder of the 2019 calendar year, then ease slightly in the later part of the season.”