Dairy | Prices to remain high

Westpac senior agricultural economist Nathan Penny expects prices to remain elevated as global supply remains very tight.

Mirá también:

Victorian farmers wary power crisis a sign of the times

However, the bank is sticking to its forecast milk price of $9.25/kgMS for this season.

Penny says, at some stage, they anticipate that Covid restrictions in China will ease further and take dairy demand higher as a result.

“At that time, global dairy prices are likely to get a further boost.”

However, he says last week’s Global Dairy Trade auction result is consistent with its current forecast.

Fonterra has a wide ranging forecast milk for the season – $8.25/kgMS to $9.75/kgMS.

Penny notes that the mixed nature of the result suggests prices are in a holding pattern.

“At the last auction the market factored in better Covid news in terms of easing restrictions in China.

“But with no fresh news to digest on that front, the price moves reflected changes in product mix rather than any underlying factors.”

However, the bank is sticking to its forecast milk price of $9.25/kgMS for this season.

Penny says, at some stage, they anticipate that Covid restrictions in China will ease further and take dairy demand higher as a result.

“At that time, global dairy prices are likely to get a further boost.”

Mirá también:

How dairy farmers can address sector’s labour crisis

However, he says last week’s Global Dairy Trade auction result is consistent with its current forecast.

Fonterra has a wide ranging forecast milk for the season – $8.25/kgMS to $9.75/kgMS.

Penny notes that the mixed nature of the result suggests prices are in a holding pattern.

“At the last auction the market factored in better Covid news in terms of easing restrictions in China.

“But with no fresh news to digest on that front, the price moves reflected changes in product mix rather than any underlying factors.”

Look also

Economic Update: Dairy producers reminded of disaster assistance deadline for 2024 losses

You may be interested in

ANTITRUST—D.N.M.: Court rescinds discovery deadlines in New Mexico dairy farmers’ suit against dairy cooperatives

Economic Update: Dairy producers reminded of disaster assistance deadline for 2024 losses

Food groups express farm bill urgency

Topics |
Dairy, Dairy Demand, Dairy market, Dairy Processors, industry, Milk, Prices, production

Legal Notice

Legal notice about Intellectual Property in digital contents. All information contained in these pages that is NOT owned by eDairy News and is NOT considered “public domain” by legal regulations, are registered trademarks of their respective owners and recognized by our company as such. The publication on the eDairy News website is made for the purpose of gathering information, respecting the rules contained in the Berne Convention for the Protection of Literary and Artistic Works; in Law 11.723 and other applicable rules. Any claim arising from the information contained in the eDairy News website shall be subject to the jurisdiction of the Ordinary Courts of the First Judicial District of the Province of Córdoba, Argentina, with seat in the City of Córdoba, excluding any other jurisdiction, including the Federal.