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NEW ZEALAND: BNZ note that "global dairy prices continue to drift lower. The GDT
Price Index is yet to post an increase in the new season and we are nearly four
months in. Prices are 14% lower than on day one of the season, pressured lower
on reasonable global milk supply including a strong start to NZ's season while
world economic growth indicators have cooled a little. Fonterra has reduced its
2018/19 milk price forecast to $6.75 from $7.00. This still looks optimistic to
us. We have lowered our forecast to $6.30, on the assumption that international
prices will at least stop falling and even show some mild improvement in 2019."