Dairy is a huge export for New Zealand

The overnight dairy auction in London saw prices slip a little again:

Offsetting the fall in the index somewhat was the rise in WPMO, up 2.1% at the auction.

Lower dairy prices are a negative input for the NZD.

WPAC lower forecast (2019-2020) to 6.50 from 6.70 NZD prior / kgms

Citing:

  • slower global growth, dairy prices to fall on this
  • NZ milk production to rise 0.5% in 2019/20 season