Adam had the Dairy auction news overnight

ANZ economists view is here

More now from ASB:

  • Milk solids price under $5 is likely unless “prices turn around significantly”
  • “We are not changing our milk price forecast yet. Prices could bounce back at the next event. But if they don’t, our ($5.30/kg) forecast will need to be reviewed.”
  • The failure of global dairy prices to recover adds further downside risk to Fonterra’s already-reduced 2014/15 milk price (currently $5.30/kg). Indeed Fonterra said in September that they need WMP prices to rebound to US$3,500 by March 2015 to maintain their current payout estimate – that’s a long way from current levels.”