[07 August/The Country] Westpac has downgraded its farmgate milk price forecast to $6.70 a kg of milksolds based on what it expects to be weaker demand from China due to the US-China trade war following a drop in prices on the Global Dairy Trade platform this morning due to weaknesses in the Chinese yuan. The bank had previously forecast a $6.90 milk price for 2019/20, compared with Fonterra Co-operative‚Äôs forecast range of $6.25 to $7.25. Westpac has warned that Chinese demand is a key factor in the outlook for dairy prices over the next year and recent developments have led to them believing that this will deteriorate. The GDT price index dropped by 2.6 per cent compared with a 2.7 per cent gain at the last auction in mid-July. China is New Zealand’s biggest export destination for dairy, logs and meat.