ANZ note that "on Thursday morning......>

NEW ZEALAND: ANZ note that "on Thursday morning Fonterra is due to announce its

milk price forecast for the 2020-21 season, but forecasting in the current

economic environment is not an easy task. Forecasts released so far by banks and

analysts range from $5.60 to $7/kg MS with our own forecast sitting near the

lower end of the range at $5.75/kg MS. No matter where the price lands it will

be significantly lower than the 2019-20 season for which Fonterra expects to pay

its suppliers a milk price between $7 and $7.60/kg. NZ dairy products are

currently commanding a premium in the global markets, but it seems unlikely

these premiums will last too much longer. Dairy prices have fallen 13% since the

beginning of 2020. Last night's GDT event did deliver a positive result with the

GDT Price Index gaining 1% however these premiums are not expected to persist.

Whole milk powder was down 0.5% but a strong lift was seen in skim milk powder

which gained 6.7%."