Synlait Milk <SML.NZ> raised its milk price forecast on Monday, pointing to higher global prices it expects to hold for the rest of the 2019-2020 season.
The dairy company, part-owned by a2 Milk Company <ATM.NZ>, raised its forecast to NZ$7.25 per kilogram of milk solids (kgMS) from NZ$7 kgMS for the 2019-2020 season.
Global dairy prices rose across almost all products in the second auction of 2020 last week with dry weather likely to lend further support.
Synlait Chief Executive Leon Clement said prices "will hold in the medium term as supply and demand continue to be evenly matched."
In December, dairy giant Fonterra <FSF.NZ> <FCG.NZ> also raised its farmgate milk price forecast range.
(Reporting by Nikhil Kurian Nainan in Bengaluru; Editing by Marguerita Choy)
