NZ: Dairy prices registers fourth consecutive gain – ANZ

Analysts at ANZ note that the New Zealand’s dairy prices registered their fourth increase in a row (+3.6%) as wholemilk powder (+5.2%) and milkfat products led the charge.

Key Quotes

“Both are seeing robust near-term demand at present and tighter seasonal supply from New Zealand. This has supported near-term delivery contracts and prices. Further out the curve prices were generally softer suggesting buyers are taking a wait-and-see approach for the start of the new season and how Europe supply progresses.”

“All up though, recent gains combined with NZD weakness have raised opening milk price forecasts into the low-$6/kg MS. This, combined with likely upside to the season just ending, means sector cashflow prospects are looking healthy for 2017/18.”