Economists' milk price forecasts for the current 2019/20 season have drifted towards the top of Fonterra's wide $6.25 to $7.25/kg range, driven by constrained supply and a significantly lower New Zealand dollar.

Fonterra's milk price for the season just ended came in at a respectable $6.35/kg.

Bank of New Zealand senior economist Doug Steel said global dairy prices have stabilised over recent months, with a hint of increase.

"The US-China trade tension has been a poor backdrop and has kept us cautious all year, but dairy demand has been firm and generally subdued global milk supply continues to offer fundamental

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