If you are having difficulty seeing this email, you can view it online here.
Email ASB 0800 803 804
Time to take a breath

Key highlights

The first step in dairy’s price correction is complete.
As prices have now corrected higher on the back of a pullback in global supply.
From here we expect prices to consolidate, before prices lift again later in the season.

Report prepared by:

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

It’s time to take a breath. The dairy price correction over August and now September has been both swift and large.

In the last auction report, we discussed why we expect this price correction to stick – in this report, we discuss how we anticipate the rest of the season to play out.

First up, we expect prices to consolidate over coming auctions. As mentioned, dairy markets will need time to digest the rapid price turnaround and assess where to next.

From there, we expect prices to lift again later in the season. Indeed, while the market now anticipates weak global production, we see scope that the weakening in supply accelerates faster than most analysts expect. With that in mind, we look to NZ spring production data for a key test of our view.

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