13 March 2018
Our forecast range for the 2018/19 average southern Australia farmgate milk price is $5.20 to $5.50/kgms with a lift in the underlying commodity milk value (CMV) which is in the range of $4.80 to $5.00/kgms.
What has changed to change this outlook from our last update? Stronger than expected demand for butter in the EU has kept supplies tight and lifted prices, also pushing cheese values higher.
As a result, we now expect there will be far less downward pressure on cheese prices in Oceania, and the outlook for the overall value of Australia’s commodity product mix has quickly improved in the past two months.
This outlook is summarised in the attached document.