Fonterra has bumped up its 2018-19 forecast farmgate milk price range from $6-$6.30 to $6.30-$6.60. Global demand had strengthened since Fonterra's last milk price update in December, driven predominantly by stronger demand from Asia. Fonterra also revised its forecast earnings down to 15c-25c per share and said it would not pay an interim dividend. That would add upward pressure on both the bank's $6.30 milk price forecast for the current season and its $6.75 forecast for 2019-20, she said. Earlier this week, ANZ revised its milk price forecast for 2018-19 from $6.10 to $6.30, while its forecast for next season was up from $6.90 to $7.30.

Source: Otago Daily Times February 28, 2019 15:33 UTC