The Fonterra Co-operative Group (ASX:FSF) has revised and narrowed its guidance for the farmgate milk price range.
This comes on the back of improved demand from China, and a strengthening New Zealand dollar.
The forecast for the 2020 financial year has narrowed from a range of $7.10 to $7.30; down to a range of $7.10 to $7.20 per kilogram of milk solids.
The 2021 financial year forecast range has narrowed from a range of $5.40 to $6.90, and is now expected to be between $5.90 and $6.90 per kilogram of milk solids.
The Co-operative will announce the final 2020 financial year farmgate milk price as part of its annual result in September.
Shares in Fonterra Shareholders' Fund (ASX:FSF) are trading 0.6 per cent lower at $3.61.