Production pressure sees Rabobank lowering farm gate milk price forecast despite another small lift in recent GDT auction results

Despite a continued slow-down in milk supply growth across the “Big 7” dairy exporting regions in the final quarter of 2018, exceptionally strong New Zealand milk production in recent months has seen Oceania commodity prices drift lower and a weaker New Zealand milk price of NZD 6.25kg/MS is now forecast for 2018/19, according to Rabobank’s latest Dairy Quarterly report.