Dairy prices insights - ANZ

Analysts at ANZ explained that dairy farmers were waking to better news than equity fund managers today, with GDT-TWI +6% and WMP +8%.

Key Quotes:

"This will bring year-to-date milk price indicators back in line with Fonterra’s $6.40/kg MS forecast."

"The improvement was driven by lingering NZ supply concerns and more price sensitive buyers filling the Chinese post New Year void.

Price sensitive buyers have also been aided by a lower USD at recent auctions. Where to now? Technically WMP has traded back toward the top its recent range (US$2,800-$3,200/t) and with Chinese New Year celebration’s coming up, a pause is likely. That said, supply developments in NZ will remain important."

"Things remain fairly patchy around the country at present and most still seem to need more follow-up rain to avoid an early-end to the season. In saying that, the hotter weather pattern does seem to have been replaced recently."