News | Rural
23 Feb 2018 9:32
NZCity News
NZCity CalculatorReturn to NZCity

  • Start Page
  • Personalise
  • Sport
  • Weather
  • Finance
  • Shopping
  • Jobs
  • Horoscopes
  • Lotto Results
  • Photo Gallery
  • Site Gallery
  • TVNow
  • Dating
  • SearchNZ
  • NZSearch
  • Crime.co.nz
  • RugbyLeague
  • Make Home
  • About NZCity
  • Contact NZCity
  • Your Privacy
  • Advertising
  • Login
  • Join for Free

  •   Home > News > Rural

    Milk prices rise at GDT auction

    A rise in whole milk powder prices at the GDT auction has increased Fonterra's chances of reaching its forecast milk price for this season.


    Fonterra
    Fonterra

    Fonterra's chances of reaching its forecast farmgate milk price for this season have improved after whole milk powder prices rose at the Global Dairy Trade auction.

    The price jumped 4.2 per cent to US$2886 ($NZ4070) a tonne on Thursday morning after Fonterra said it expects its New Zealand milk collection for the 2017/18 season to be 3 per cent below last season as dry weather stunts grass growth and lowers milk production.

    That prompted dairy analyst AgriHQ to increase its milk price forecast for the current season by one cent to $6.10 per kilogram of milk solids, the first time it has moved higher since October but still lagging behind Fonterra's forecast of $6.40/kilograms of milk solids.

    "The likelihood of reaching this forecast has now improved given that whole milk powder prices are tracking higher again," said AgriHQ's Susan Kilsby.

    Fonterra expects to collect 1480 million kgMS in New Zealand this season, down 3 per cent from the 1525 million kgMS it collected in the 2016/17 season.

    The cooperative said wet conditions experienced by farmers at the beginning of spring improved from late October into November, but the recent dry weather was impacting pasture quality across the country.

    Dry conditions are expected to continue, and even if it rains as forecast in early 2018, it will not be enough to bring production back to previously anticipated levels, it said.

    New Zealand supplies more than half the whole milk powder traded around the world, so changes in local production have a big impact on the global market, Ms Kilsby said.

    On the other side of the ledger, demand for whole milk powder remained steady with China, the largest buyer, continuing to use imported product to make up the shortfall in its own domestic milk production.


    NZN




    © 2018 NZN, NZCity


     Other Rural News
     22 Feb: Shares gain as investors take a2 above $9b
     22 Feb: A2 Milk a $10b company, eclipsing Fonterra
     21 Feb: A2 shares jump 25pc on Fonterra deal
     21 Feb: GDT prices slip for first time this year
     20 Feb: Fonterra likely to hike milk payment: OMF
     08 Feb: O'Connor wants broad review of Fonterra
     07 Feb: Kiwi up on back of boost to dairy prices
     Top Stories

    RUGBY RUGBY
    Chiefs back Ngatai in key fullback role More...


    BUSINESS BUSINESS
    Delegat's 1H profit up, heady about year More...



     Today's News

    Business:
    Delegat's 1H profit up, heady about year 9:25

    Entertainment:
    Rihanna paid a touching tribute to her mother on her own 30th birthday on Tuesday (20.02.18) 9:05

    International:
    Steven Pinker talks Donald Trump, the media, and how the world is better off today than ever before 8:55

    International:
    Japanese man who fathered 13 surrogate children not making headlines at home 8:35

    Entertainment:
    Snoop Dogg came to the rescue of a stranded driver on Sunday (18.02.18) 8:35

    Cricket:
    Black Caps slip to fourth in T20 rankings 8:15

    Rugby:
    Chiefs back Ngatai in key fullback role 8:05

    Entertainment:
    Jay-Z splurged $110,000 on a night out on Sunday (18.02.18) 8:05

    Living & Travel:
    Census codes set to arrive at NZ homes 7:55

    Rugby League:
    Williams happy on return from Super League 7:45


     News Search






    Power Search


    © 2018 New Zealand City Ltd