MNI: US Dec Consumer Inflation Expectations Mixed -NY Fed

MNI BRIEF: BOC Releasing Pandemic Actions Review Jan 17

BANK OF CANADA RELEASING PANDEMIC REVIEW REPORT ON JAN 17

MNI China Daily Summary: Monday, January 13

MNI BRIEF: China December Vehicle Sales Up 10.5%

MNI BRIEF: PBOC To Add Forex Reserves Allocation In HK - Pan

EZ/UK T-Bill Calendar: Spain, Belgium Auction on Tuesday

EZ/UK Bond Supply Calendar: EU, Greece Syndications

MNI BRIEF: China 2024 Exports Grow 5.9% Y/Y

MNI EXCLUSIVE: EU-Mercosur Deal Close, But Likely Short-Lived - Officials

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

© 1982-2025 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

Westpac Sees Upside Risks To Full Season Milk Price Forecast

NEW ZEALAND

The local bank weighs in on the latest dairy auction, noting the strong result poses upside risks to its milk price forecast for this season. See below for full details.


Westpac: "Last night's dairy auction was one of the strongest in years. Overall prices were up 5.5% and Whole Milk Powder rose 7.2%. There is upside risk to our $8.40 Milk Price forecast for the season.


Prices rose strongly more or less across the board driven by the continued return of Chinese buyers in the Whole Milk and Skim milk products. Futures markets had indicated a strong auction was in the offing and were right. This was the strongest auction we have seen since 2022.


If prices can sustain these levels, then the upside risks to our 2024/25 milk price forecast of $8.40 are firmly back in play. We will be looking for Fonterra to provide an update on their current $8 guidance with an expectation this will lift at least a bit.


We need to be a bit careful about extrapolating recent price trends. The reality is auction participation by the Chinese has been hit and miss and price volatility has been significant. Nevertheless, we now find ourselves with price levels at the top of the range seen this year and noticeably above long-term averages (the GDT index is around 10% above the 10-year average. So, there are some grounds for optimism."

Homepagemarkets-real-timeBulletMarketsFixed Income BulletsForeign Exchange Bullets

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.