'Big Wet' in New Zealand may boost Global Dairy Trade prices
Bad weather in New Zealand could push dairy prices higher at today’s Global Dairy Trade auction.
Billed the ‘Big Wet’, the past couple of months has seen unseasonably bad weather, the North Island has been hit with a wet winter, the like of which has not been seen in over 10 years.
Some parts of New Zealand experienced rainfall at 150pc of average September rain fall, with up to 154mm of rain falling in some parts.
New Zealand Bank rural economist Nathan Penny says it's "two steps forward and one step back" for the dairy industry at the moment.
He said that in the Waikato and surrounding areas production is not doing what it should this time of year and there has been so much rain in recent weeks that some areas have already exceeded October’s rainfall average.
The impact of the wet weather is expected to push dairy prices higher in today’s Global Dairy Trade, with some commentators predicting WMP prices to lift by as much as 6-8pc.
Last month New Zealand Bank ASB reported that dairy prices were back on track, after Fonterra upgraded its 2016/17 milk price forecast by NZ$0.50c. It described the price correction as “sustainable”.