FXStreet (Mumbai) - Westpac lowered their dairy prices forecast from $5.30 per kilogram of milk solids to $4.50 on Wednesday. The bank’s move came after the Global Dairy Trade Auction results on Tuesday showed that the dairy prices fell another 7.9%, posting the third consecutive decline.
Westpac senior economist Anne Boniface noted earlier today "We continue to expect an El Niño weather pattern to bring drought conditions to parts of New Zealand this summer, and that this will weigh on NZ milk production volumes and put some upward pressure on prices later in the season, however, the recent string of weak auction results and ongoing growth in milk production in other parts of the world, needs to be factored into this season's payout forecast."
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