As expected, the dairy giant has trimmed its 2018/19 forecast Farmgate Milk Price range to between 6 dollars and 6 dollars 30 a kilo of milk solids.
ASB says it's not surprising as dairy prices have dipped since Fonterra's last update in October, and the NZ dollar has strengthened.
However, senior rural economist Nathan Penny anticipates more New Zealand production strength than Fonterra appears to have factored into its forecast.
Unlike Fonterra, he doesn't expect dairy prices to lift over the coming months.
He's forecasting a Farmgate Milk Price range of 5 dollars 85 to 6 dollars 15 a kilo.
