NZD traders – ANZ NZ revise its milk price forecast higher

ANZ lift their forecast by 50c for the farmgate milk price for the 2020-21 season to $7.70/kg MS

  • forecast for 2021-22 season is now at $7.30/kg MS

Overnight we had a huge, huge jump at the dairy auction:

ANZ lift their forecast by 50c for the farmgate milk price for the 2020-21 season to $7.70/kg MS

Further from ANZ:

  • Dairy commodity prices have traded in 2021 at a significantly higher level than expected, which has more than offset the stronger NZD. 
  • Recent NZD strength impacts the 2021-22 season’s milk price more than the current season. There is also a much higher degree of uncertainty in the longer-term forecasts; hence a more cautious approach should be taken regarding next season’s milk price.

Higher dairy is supportive of the New Zealand dollar (dairy is a huge export from the country) 

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