New Zealand: $8/kgMS Farm Gate Milk Price Still Viable for Current Season
Source: The DairyNews
Last week's GlobalDairyTrade (GDT) event, marked by subdued activity, came as no surprise, as noted by ASB economist Takeall.
Anticipating a relatively flat outcome, Takeall explains, "The event's result holds few implications for the current season, which is already well-advanced, or for our initial projections for the upcoming season." He adds, "Dairy prices continue to fluctuate within a narrow range, lacking clear momentum since their rebound from last year's mid-year lows."
Reflecting on global dairy market dynamics, Keall observes minimal transformative shifts, with various price drivers counterbalancing each other's effects.
Maintaining confidence in their forecasts, Keall states, "We stand by our projection of $8/kgMS for the ongoing season and $8.30/kgMS for 2024/25. Risks for the upcoming season appear reasonably balanced at present." He advises, "Considering that milk price futures for 2024/25 are currently trading around $8.45/kgMS, up from approximately $8 at the time of our forecast release, it may be prudent to hedge some output at these levels, given the balanced risk outlook."
With less than six weeks remaining in the current season, the stability in dairy prices suggests that the envisioned $8/kgMS farm gate milk price remains within reach.
Reflecting on global dairy market dynamics, Keall observes minimal transformative shifts, with various price drivers counterbalancing each other's effects.
Maintaining confidence in their forecasts, Keall states, "We stand by our projection of $8/kgMS for the ongoing season and $8.30/kgMS for 2024/25. Risks for the upcoming season appear reasonably balanced at present." He advises, "Considering that milk price futures for 2024/25 are currently trading around $8.45/kgMS, up from approximately $8 at the time of our forecast release, it may be prudent to hedge some output at these levels, given the balanced risk outlook."
With less than six weeks remaining in the current season, the stability in dairy prices suggests that the envisioned $8/kgMS farm gate milk price remains within reach.
