Rabobank is holding its farm-gate milk price forecast of $7.15 for the 2019-20 season amid strong global market fundamentals.
In its latest quarterly global dairy report, the bank said those fundamentals had remained well-balanced through the first half of 2019, with stagnant milk supply growth, reduced stocks and price stability continuing to be the key themes permeating across the sector.
Milk production across the "big seven" exporters - the EU, United States, New Zealand, Australia, Uruguay, Argentina and Brazil - in 2019 was below the prior year, allowing markets to find support.
A sharp finish to the milk production seasons in both New Zealand and Australia, coupled with robust China imports, supported Oceania-origin dairy product prices, Rabobank dairy analyst Emma Higgins said.
The outlook through the second half of 2019 pointed to an ongoing challenge to "turn the milk production tap on" across key exporting regions.