If you are having difficulty seeing this email, you can view it online here.
Email ASB 0800 803 804
Chinese sharemarket weighing temporarily on already-weak dairy

Key highlights

Overall dairy prices lowest in auction history.
As dairy buyers back off from markets temporarily on Chinese stockmarket concerns.
We see this additional weakness as temporary; thus we stick with our 2015/16 forecast of $5.00/kg.

Report prepared by:

Nathan Penny, ASB Rural Economist
Phone: +64 9 448 8778
Email: nathan.penny@asb.co.nz

In markets confidence matters.  And dairy markets are no different.  At present, dairy markets are at a low ebb in confidence terms.

Moreover, the current concerns around Chinese stockmarkets and, to a lesser degree, Greece have compounded low dairy confidence.  Already-weak dairy prices have thus weakened further.

However, eventually dairy market specifics, i.e. global supply and demand, will reassert over dairy prices.  And as they do, we expect dairy prices to recover much of the lost ground from the last two dairy auctions.

That said, dairy markets remain oversupplied and prices weak.  And we expect that to correct slowly, starting in late 2015.  In particular, NZ and global production needs to slow materially.  At this stage we expect flat production growth for the 2016 season, compared to the 3.6% lift for the season just gone.    

Read the full PDF Report

Important Disclaimer - The views expressed herein are those of the authors and are based on information believed but not warranted to be correct. Any views or information, whilst given in good faith, are not necessarily the views of ASB Bank Limited and are given with an express disclaimer of responsibility and no right of action shall arise against any of the authors, ASB Bank Limited or its employees either directly or indirectly out of any views, advice or information.
Security Reminder
ASB will never ask you by email for your secure banking information (account or credit card details, password, PIN number or NetCode details) or ask you to Log in to your account from an email. ASB will always ask you to Log in through our website and you should do so by typing www.asb.co.nz directly into your browser address bar. If you are concerned about an email's authenticity, please contact us directly on 0800 327 863 or forward the email to phishing@asb.co.nz

Stop receiving emails

Unsubscribe from
ASB emails


Read more about the safe and secure service ASB provides to its customers

Privacy Policy

See how ASB safeguards your personal and financial information

Terms & Conditions

The terms & conditions of our products and services
© ASB Bank Ltd. 2013