Farmgate milk price midpoint lowered by 20 cents to $8.30/kgMS by Fonterra
Fonterra, New Zealand’s dairy giant, has reduced its 2022/23 milk price forecast midpoint by 20 cents to $8.30/kgMS from $8.50 due to weaker-than-expected Chinese demand and increased US and Eurozone milk production. A decline or flat pricing of Fonterra’s products on the Global Dairy Trade was cited as the main driver, with whole milk powder demand from China not returning to the expected levels. Additionally, milk production in the Northern Hemisphere is increasing, leading to a rise in skim milk powder stocks as they enter their Spring flush. The news caused steep losses in the NZD/USD pair alongside risk aversion, with the pair down 0.60% on the day at 0.6217.
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