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

 


NZ dollar edges up ahead of Fonterra milk price forecast

NZ dollar edges up ahead of Fonterra milk price forecast

By Paul McBeth

May. 27 (BusinessDesk) - The New Zealand dollar edged up in local trading ahead of Fonterra Cooperative Group's milk price forecast tomorrow, which some economists expect to be cut after a steady decline in the price of dairy products sold on the exporter's GlobalDairyTrade platform.

The kiwi increased to,85.60 US cents at 5pm in Wellington from 85.48 cents at 8am, and 85.34 cents yesterday. The trade-weighted index rose to,79.86 from 79.73 yesterday.

Fonterra will announce its forecast for the 2013/14 and 2014/15,seasons when New Zealand's stock market opens tomorrow, and is widely seen cutting this year's,payout to its farmer shareholders from a record $8.65 per kilogram of milk solids. Soaring dairy prices have underpinned New Zealand's strong terms of trade last year, and their recent decline has economists paring their expectations for a big payout.

"I expected a bit more pressure placed on the kiwi ahead of the expectations for a weaker payout forecast by Fonterra tomorrow, that will be in the back of everyone's minds," said Stuart Ive, senior adviser at OMF in Wellington. "If Fonterra were to reduce the payout, the kiwi might struggle to go through level" of 85/85.10 US cents, which has strong support, he said.

Trading was muted yesterday with the US and UK closed for holidays.

The kiwi was little changed at 65.67 euro cents from 62.65 cents yesterday after European Central Bank president Mario Draghi told a forum in Portugal the bank must be particularly watchful for any negative price spiral in the euro zone, and that it was not resigned to inflation being too low for too long.

Traders will be watching for any more comments from the forum, after the European Parliament elections showed increased support for extremist euro-skeptic parties.

The local currency rose to,87.26 yen from 86.96 yen yesterday as Bank of Japan deputy governor Kikuo Iwata said excessive gains in the currency are bad for the nation’s exports. Governor Haruhiko Kuroda is due to speak at a conference tomorrow.

The kiwi was little changed at 92.39 Australian cents at 5pm in Wellington from 92.37 cents, and traded at 50.76 British pence from 50.68 pence.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Half Empty: Fonterra's 2017 Opening Forecast Below Expectations

Fonterra Cooperative Group raised its forecast farmgate milk payout for next season by less than expected as the world's largest dairy exporter predicts lower prices will crimp production and supply will pick up. The New Zealand dollar fell. More>>

ALSO:

Pest Control: Mouse Blitz Team Leaves For Antipodes

The Million Dollar Mouse project to rid Antipodes Island of mice is underway with the departure of a rodent eradication team to the remote nature reserve and World Heritage Area. More>>

Gongs Got: Canon Media Awards & NZ Radio Awards Happen

Radio NZ: RNZ website The Wireless, which is co-funded by NZ On Air, was named best website, while Toby Manhire and Toby Morris won the best opinion general writing section for their weekly column on rnz.co.nz and Tess McClure won the best junior feature writer section. More>>

ALSO:

Pre-Budget: Debt Focus Risks Losing Opportunity To Stoke Economy

The Treasury is likely to upgrade its forecasts for economic growth in Budget 2016 next week but Finance Minister Bill English has already signalled that more of his focus is on debt repayment than on fiscal stimulus or tax cuts... More>>

ALSO:

Fulton Hogan's Heroes: Managing Director Nick Miller Resigns

Fulton Hogan managing director Nick Miller will leave the privately owned construction company after seven years in charge. The Dunedin-based company has kicked off a search for a replacement, and Miller will stay on at the helm until March next year, or until a successor has been appointed and a transition period completed. More>>

ALSO:

Gordon Campbell: On Electricity, Executions, And Bob Dylan

The Electricity Authority has unveiled the final version of its pricing plan for electricity transmission. This will change the way transmission prices (which comprise about 10% of the average power bill) are computed, and will add hundreds of dollars a year to power bills for many ordinary consumers. More>>

ALSO:

Half Empty: Fonterra NZ, Australia Milk Collection Drops In Season

Fonterra Cooperative Group says milk collection is down in New Zealand and Australia, its two largest markets, in the first 11 months of the season during a period of weak dairy prices. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news