FXStreet (Bali) - Following the latest New Zealand Fonterra GDT auction, in which the price index came at -1.4% vs -1.6% prior, Westpac has cut its forecast for Fonterra 2015/16 milk payout at $NZ4.20kg. Wetpac now "assumes whole milk powder (WMP) prices over the 2015/16 season average around $2200 USD/tonne this season and an average conversion rate for the season of about 0.69c." Westpac adds that "European milk production continues to grow strongly", and that "should concerns about global growth and financial market volatility intensify further, we could see prices fall." "Strong growth in global milk supply combined with subdued demand from China, is likely to keep a lid on prices for much of this year", Westpac concluded, while forecasting a farm gate milk price of $5.20 next season." For more information, read our latest forex news.