A milk glut around the world shows no sign of easing, putting downward pressure on farmgate milk prices for the next few months. This prompted the co-operative to lower its forecast farmgate milk price by 50c to $9.25/kgMS, with a new range of $8-$10.50/kgMS. ANZ agricultural economist Matt Dilly isn't surprised by Fonterra's revised milk price forecast at $9.25/kgMS. Dilly told Rural News that this change brings Fonterra's forecast into alignment with ANZ's forecast of $9.20/kgMS. "One exception is Europe, where milk prices have been weaker and the hot summer has caused production to slow somewhat."