If the dollar incorporates correct expectations of milk price increases like this then I don’t think we should be banging on about it being “too high” (Not that I think we should bang on about it in the first place).
I mean in terms of prices, aluminium has recovered strongly from its lows, beef has been holding firmish, lamb is at record high levels, and there is this indication that dairy prices could rebound. All this is occuring as manufactured goods “inventories” and “capacity” overseas are overblown.
Rising export prices and weak import prices implies higher incomes for NZ, and a higher NZ dollar – one that we shouldn’t complain about. Very interesting.
So when Homepaddock includes the latest price, it shows that prices are back to about April levels, but are still well down on last year. The real interest is the trend going forward – with the world recovering will we see prices keep rising? Will input costs stay down (shipping and fertilizer appear to be for now)?