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

 


NZ dollar gains as Fonterra affirms milk price

NZ dollar gains as Fonterra affirms milk price, announces Chinese joint venture

By Paul McBeth

Aug. 27 (BusinessDesk) - The New Zealand dollar rose after Fonterra Cooperative Group affirmed its forecast milk price payout to farmers, and unveiled a $615 million joint venture with China's Beingmate.

The kiwi rose to 83.62 US cents at 5pm in Wellington from 83.24 cents at 8am and 83.41 cents yesterday. The trade-weighted index increased to 78.96 from 78.74 yesterday.

Fonterra today affirmed its 2015 forecast farmgate payout of $6 per kilogram of milk solids, and announced an Australian-based tie-up with Beingmate to produce infant formula for the Chinese market. The announcements eased investors' fears the world's biggest dairy exporter would announce more bad news amid falling local commodity prices.

"People were getting ahead of themselves with the market expecting a possibly negative announcement," said Sam Tuck, senior FX strategist at ANZ Bank New Zealand in Auckland. Still, "I wouldn't expect us to strengthen too much further - the trend is quite clear."

The US dollar rose to a 13-month high yesterday as upbeat consumer confidence and manufacturing reports stoked expectations the Federal Reserve will start raising interest rates sooner and faster than previously anticipated.

ANZ's Tuck said "everything is pointing to the US dollar being the currency of choice."

Government figures today showed New Zealand food prices fell on an annual basis in July, indicating the Reserve Bank might not have to hike interest rates again with fewer inflationary pressures creeping into the economy.

The local currency traded at 89.70 Australian cents from 89.75 cents yesterday, and increased to 86.95 yen from 86.63 yen. It advanced to 63.53 euro cents from 63.16 cents yesterday, and rose to 50.51 British pence from 50.27 pence.

(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
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news