Fonterra’s latest sits at $4.60/kg MS.
“The lift in the AgriHQ price is primarily driven by market expectations of further gains in dairy commodity prices through the rest of the season,” AgriHQ dairy analyst Susan Kilsby said.
The NZX Dairy Derivatives market indicates whole milk powder (WMP) prices will reach US$3000 a tonne before the end of 2015 and stay there for the rest of the season.
“This is good news for dairy farmers because US$3000/t is about the price required for most farms to break even.
The overnight results were largely aligned with market expectations.
The NZX Dairy Derivatives market predicted both whole milk powder and skim milk powder prices would lift substantially.
“The NZX market indicates further price rises can be expected for milk powder products but the outlook for butter is more subdued,” Kilsby said.
Butter prices for product to be delivered in 2016 eased but strong gains were recorded for anhydrous milk fat.
“AMF was previously undervalued when considered on a milkfat content basis but is now priced similar to butter.
“NZX Butter Futures show a relatively flat outlook for this product.”
GDT price indexes were up for all products traded except butter which eased by 2.3%.
The price indices for WMP and SMP gained 12.9% and 13.4% respectively. The AMF price index gained 9.9% while the lift in the cheddar price index was more modest at 0.5%.The lactose price index gained 5.9%.
