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While a rise in the latest Global Dairy Trade auction is "excellent news for New Zealand dairy farmers," it would be wise to watch the exchange rate, Emma Higgins says.
"We really need to keep an eye on what's happening with the dollar," Rabobank's senior dairy analyst told The Country's Jamie Mackay.
This morning the Kiwi dollar was "around that 69 cent mark," Higgins said.
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"We haven't really seen that number since - probably Quarter One of 2019 - so that's certainly something to keep an eye on."
This was caused by fallout from the US election and uncertainty around the transition of the new President, Higgins said.
Meanwhile, there were a couple of good points to take away from the latest GDT result, Higgins said.
"The first is whole milk powder volumes, they have been at their peak, and the second is really strong global milk production."
Finally, Higgins hinted at "a Christmas gift to all" with the suggestion that she may lift her forecast milk price to "somewhere between the 6.50 and 7 buck mark."
"That's certainly possible, but like I said I'll be a little bit cautious in that upper end range, just given that the dollar is performing a lot stronger than what we've expected it to really, across the last six months or so."