NZD traders heads up - ANZ have revised their 2018/19 milk price forecast to $6.30/kgms (previously $6.10)

ANZ say New Zealand forecast returns at the farmgate level have lifted, citing dairy commodity prices improving quicker expected, to continue into next season

• We have therefore revised our milk price forecast for the 2018/19 season to $6.30/kg milksolids (MS) (previously $6.10/kgMS).
• Our forecast for next season is now at a healthy $7.30/kg MS (up from $6.90/kgMS).
• The 2019/20 forecast is based on a weighted whole milk powder (WMP) price of USD2850/t for next season. This is approximately 5% lower than the current price. Next season's forecast should be viewed with an air of caution due to the longer time horizon.
• Global growth is slowing, and if this trend is not arrested it could negatively impact demand for dairy commodities.