# Production gains put pressure on prices

> AgriHQ analysts say Australian milk production in May fell 2.8%, its smallest decline of the season. New Zealand expects a 4% rise in milk volumes for 2017-18 as farmers respond to better prices. Milk powder prices are most exposed to a larger NZ output, while China's demand could support them.

- Date: 2017-06-28 · published 2017-06-28T12:00:00.000Z
- Category: market · region Oceania · magnitude low
- Page: https://feedsoft.ai/events/70512-production-gains-put-pressure-on-prices
- Commodities: [Milk (Class III)](https://feedsoft.ai/c/MILK.md)

## Why it matters

Expected NZ supply growth for 2017-18 would pressure whole milk powder prices, the most exposed product. Buyers should watch whether Chinese demand holds up.

## Read by commodity

- MILK: bearish ▼

## Sources

- farmersweekly.co.nz: https://www.farmersweekly.co.nz/news/production-gains-put-pressure-on-prices/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.