Economists are forecasting farmgate milk prices this season will increase to 8 dollars and 4 cents per kilogram of milk solids.
Fonterra itself says it expects to pay farmers between 7 dollars 25 and 8 dollars 75 per kilogram of milk solids - ahead of its 7 dollars 54 last season.
NZX Head of Insight Julia Jones says anything's possible in the market at the moment.
She says given all the variables they believe 8.04 is a sensible price to forecast.
