Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


NZ dollar pares fall after Fonterra raises farmgate forecast

NZ dollar pares decline after Fonterra raises forecast payout to farmers

By Tina Morrison

Feb. 27 (BusinessDesk) – The New Zealand dollar pared its decline after Fonterra Cooperative Group raises its forecast payout for dairy farmers to a record.

The kiwi climbed to 83.11 US cents at 9am in Wellington, from 82.90 cents at 8am and 83.30 cents at 5pm yesterday after Fonterra hiked its forecast pay-out to farmers by 35 cents to $8.65 per kilogram of milk solids to farmers in the 2013/14 season, up from a previous forecast of $8.30 per kgMS. The dairy company held its forecast dividend of 10 cents per share.

Fonterra, the world's biggest dairy exporter, has raised its forecast pay-out to farmers as global demand for milk powders remains strong. The local currency was weaker against the US dollar as investors favoured the greenback amid political tensions in Russia and the Ukraine and following a report that new home sales in the US surged to a 5 ½ year high in January, easing concerns about a slowdown in the housing market.

“It was a night of USD strength, which gained against all the major currencies as well as a wide swathe of emerging market currencies,” Bank of New Zealand currency strategist Raiko Shareef said in a note.

In New Zealand today, traders will be eyeing data on January trade figures and net migration at 10:45am.

In Australia, fourth quarter capital spending data is expected to show weakness as the mining boom slowed. The report, scheduled for release at 1:30pm New Zealand time, will also give the first estimates of 2014-15 spending.

The New Zealand dollar touched a 10-day high of 92.69 Australian cents early this morning and was trading at 92.58 cents at 8am in Wellington from 92.47 cents at 5pm yesterday.

The Australian currency has been under pressure this week following weakness in the Chinese yuan, as the Aussie is traded as a proxy for the Chinese currency which is not freely traded. Also damping demand for the Aussie, government figures yesterday showed a weak residential building market pushed down the value of construction in the fourth quarter of last year.

In the US, traders are expecting new Federal Reserve chair Janet Yellen to signal that the central bank will continue to taper its bond-buying programme in testimony before the Senate Banking Committee today.

The New Zealand dollar edged lower to 49.81 British pence from 49.95 pence yesterday, slipped to 85.01 yen from 85.28 yen and was unchanged at 60.63 euro cents. The trade-weighted index weakened to 78.03 from 78.19 yesterday.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: RBNZ Keeps OCR At 3.5%, Signals Slower Pace Of Future Hikes

Reserve Bank governor Graeme Wheeler kept the official cash rate at 3.5 percent and signalled he won’t be as aggressive with future rate hikes as previously thought as inflation remains tamer than expected. The kiwi dollar fell to a seven-month low. More>>

ALSO:

Weather: Dry Spells Take Hold In South Island

Many areas in the South Island are tracking towards record dry spells as relatively warm, dry weather that began in mid-August continues... for some South Island places, the current period of fine weather is quite rare. More>>

ALSO:

Scoop Business: Productivity Commission To Look At Housing Land Supply

The Productivity Commission is to expand on its housing affordability report with an investigation into improving land supply and development capacity, particularly in areas with strong population growth. More>>

ALSO:

Forestry: Man Charged After 2013 Death

Levin Police have arrested and charged a man with manslaughter in relation to the death of Lincoln Kidd who was killed during a tree felling operation on 19 December 2013. More>>

ALSO:

Smells Like Justice: Dairy Company Fined Over Odour

Dairy company fined over odour Dairy supply company Open Country Dairy Limited has been convicted and fined more than $35,000 for discharging objectionable odour from its Waharoa factory at the time of last year’s ”spring flush” when milk supply was high. More>>

Scoop Business: Dairy Product Prices Decline To Lowest Since July 2012

Dairy product prices dropped to the lowest level since July 2012 in the latest GlobalDairyTrade auction, led by a slump in rennet casein and butter milk powder. More>>

ALSO:

SOE Results: TVNZ Lifts Annual Profit 25% On Flat Ad Revenue, Quits Igloo

Television New Zealand, the state-owned broadcaster, lifted annual profit 25 percent, ahead of forecast and despite a dip in advertising revenue, while quitting its stake in the pay-TV Igloo joint venture with Sky Network Television. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand

Mosh Social Media
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news