BNZ raise their 2018/19 milk price forecast to $6.50 (from $6.25 previously)

NZD traders note! BNZ hiking their their expectations as ASB did also:

• Heads up NZD traders - ASB revise their Fonterra milk price forecasts, with 'upside risk'

Dairy is a huge NZ export, higher prices (they've been rising at the dairy auction for a good few months now) act as supportive for the NZ dollar.

Main points from the BNZ note:

• Dairy price rise continues on tightening global supply and robust demand
• We lower our NZ milk production expectations
• 2018/19 milk price forecast increased to $6.50
• 2019/20 up to $6.70, as world economic risks recede from highs
• Positive for NZ terms of trade, incomes; not so GDP
• We continue to monitor many global risks

Higher dairy prices 'moo'ted