Synlait Milk reaffirms milk price forecast

Company News

by Kathy Skantzos

Dairy company Synlait Milk (ASX:SM1) has reaffirmed its milk price forecast of $6.50 kgMS for the 2017-2018 season.

The company said this forecast is dependent on commodity prices continuing to strengthen for the rest of the season.

The price has remained at $6.50 since May 2017, even though global pricing remains unpredictable.

Managing Director and CEO John Penno said while it is too early in the season to give pricing certainty, there is likely to be a period of price stability over the coming months.

He added that the diary commodity prices have started to improve on the back of a strengthening economy and reduced milk production forecast due to bad weather conditions.

Shares in Synlait Milk (ASX:SM1) closed 0.15 per cent lower on Thursday at $6.51.

Kathy Skantzos

Finance News Network
Kathy presents the Market Outlook and ASX company news. She joined FNN in September 2017. She has been in print and online journalism for over 9 years. She also worked in corporate communications.