BNZ cuts New Zealand milk price forecast

Fonterra due to review payment in December

The Bank of New Zealand now projects Fonterra will cut its milk price forecast to $4.50 per kilogram from $4.60. BNZ had previously forecast $5.00/kgMS.

There is a GlobalDairyTrade auction in the week ahead with prices expected to decline 3%, according to the New Zealand Herald.

The New Zealand dollar has been battered by falling milk prices over the past year.