NZ dollar rises with Fonterra 2016 forecast due tomorrow 27 May 2015
Related articles
- NZ consumers grow more upbeat, may resume spending Business
- Knowles quits as CEO of KiwiBank Business
- NZ migration bolstered by British invasion Migration
- NZ manufacturing activity reaches highest since 04 Business
- NZ dollar hits 22-month high vs euro Business
- OceanaGold finds new gold deposits at Fraser mine Business
- Transpower gets go-ahead for $170m SI upgrade Business
- NZ home sales creep up in March, still subdued Property
- NZ economy expands at fastest pace in two years Business
- New Zealand food prices fall in February Business
NZ dollar rises with Fonterra 2016 forecast due tomorrow
By Paul McBeth
May 27 (BusinessDesk) - The New Zealand dollar bounced from a two-month low in local trading as investors await the outcome of today's Fonterra Cooperative Group's board meeting, which is expected to have settled the first forecast payout for next season, for release tomorrow.
The kiwi rose to 72.50 US cents at 5pm in Wellington from 72.18 cents at 8am, still down from 73.13 cents yesterday. The trade-weighted index declined to 75.88 from 76.15 yesterday.
New Zealand's currency fell during Northern Hemisphere trading last night as investors rallied behind the greenback following upbeat economic data, reinforcing expectations the US Federal Reserve will shift away from its ultra-loose monetary policy this year.
Local focus is on Fonterra's payout update for the 2015/16 season, which is expected tomorrow. The 2014/15 payout is forecast to be $4.50 per kilogram of milksolids, a plunge from last year's record $8.40 per kg/MS.
All eyes are on the 2015/16 season as two seasons of low payouts in a row would place financial strain on many dairy farmers, whose production is a bellwether for Zealand's export and economic performance.
Rival Westland Milk Products today affirmed its payout for the current season and expects an increased payout for 2016, assuming Chinese buyers return to the market.
"ANZ (Bank)'s forecast for the milk price is $5 to $5.25 (per kilogram of milk solids) for the season, and an advance payment of $3.50. These two things are really interesting and the advance payout is probably, for farmers, the more important of the two," said Sam Tuck, senior FX strategist at ANZ Bank New Zealand in Auckland. "Everyone is waiting for the Fonterra milk price announcement to make sure they're not off-base with that, and the kiwi will probably sit around here for the moment."
Fonterra today said New Zealand milk production was 8 percent higher in April than the same month a year earlier, taking year-to-date production to 2 percent above the prior comparable period. Australian milk production was 7 percent higher in April, and up 6 percent for the season so far.
The New Zealand Institute of Economic Research today estimated the country's economy would grow at about 3 percent per year until 2017, driving job growth and reducing unemployment, though low inflation is expected to keep a lid on interest rates.
New Zealand's two-year swap rate was unchanged at 3.37 percent at 5pm in Wellington from the same time yesterday, and the 10-year swap rate slipped to 3.98 percent from 4.01 percent.
The kiwi dollar advanced to 93.55 Australian cents from 93.36 cents yesterday, and dropped to 4.4983 Chinese yuan from 4.5382 yuan. It fell to 66.56 euro cents from 66.87 cents, and declined to 47.06 British pence from 47.33 pence. The kiwi increased to 89.23 yen at 5pm in Wellington from 89.10 yen yesterday.
(BusinessDesk)
News
Hilary Timmins' Award-Winning UK Documentary Series To Inspire NZ Students
29 Jun 2020 Education
Dream Catchers, produced and directed by Hilary Timmins, celebrates the success stories of more than thirty inspirational New... more
New Zealand reaffirms support for Flight MH17 judicial process
7 Mar 2020 News
Ahead of the start of the criminal trial in the Netherlands on 9 March, Foreign Minister Winston Peters has reaffirmed the need to... more
Business
NZ Government's Economic package to fight COVID-19
17 Mar 2020 Business News
The Coalition Government has launched the most significant peace-time economic plan in modern New Zealand history to cushion the... more
NZ Government announces aviation relief package
19 Mar 2020 Business News
Transport Minister Phil Twyford today outlined the first tranche of the $600 million aviation sector relief package announced earlier... more
Living
Diversity was Key at New Zealand Trade Tasting in London
6 Jun 2022 Food & Wine
New Zealand Winegrowers Annual Trade Tasting was recently held in London, on Wednesday 4 May, in Lindley Hall.
It was the first... more
Kiwi author stuns Behind the Butterfly Gate
12 Jan 2022 Arts
Hidden behind the Butterfly Gate is where the secret has been kept for 76 years...
New Zealand writer Merryn Corcoran’s... more
Property
Fairer rules for tenants and landlords
17 Nov 2019 Property
17 NOVEMBER 2019
The Government has delivered on its promise to the over one million New Zealanders who now rent to make it fairer... more
New Zealand Government will not implement a Capital Gains Tax
17 Apr 2019 Property
The Coalition Government will not proceed with the Tax Working Group’s recommendation for a capital gains tax, Jacinda Ardern... more
Migration
Boosting border security with electronic travel authority – now over 500,000 issued
19 Nov 2019 Migration
19 NOVEMBER 2019
We’ve improved border security with the NZeTA, New Zealand Electronic Travel Authority, which helps us to... more
Christchurch reinstated as refugee settlement location
18 Aug 2018 Migration
18 AUGUST 2018
HON IAIN LEES-GALLOWAY
The announcement that Christchurch can once again be a settlement location for refugees... more
Travel
Gallipoli Anzac Day services cancelled
19 Mar 2020 Travel & Tourism
The New Zealand and Australian Governments have announced this year’s joint Anzac Day services at Gallipoli will be cancelled... more
New Zealanders advised not to travel overseas
19 Mar 2020 Travel & Tourism
New Zealanders advised not to travel overseas
more
Sport
The Skipper's Diary: Sir Richard Hadlee honouring his father and NZ's Forty-Niners
27 Oct 2019 Cricket
NZNewsUK London Editor Charlotte Everett spoke to Sir Richard Hadlee about why he’s chosen to publish his father’s... more
PREVIEW: All Blacks v England semi-final
26 Oct 2019 Rugby
The two most convincing quarterfinals winners are set to square off in a semifinal showdown for the ages when the All Blacks meet old... more
Columns
Gordon Campbell on the Gareth Morgan crusade
11 Nov 2016 Opinion
Gordon Campbell on the Gareth Morgan crusade
First published on Werewolf
The ghastly likes of Marine Le Pen in France and Geert ... more
Gordon Campbell on the US election outcome
10 Nov 2016 Opinion
Column - Gordon Campbell
Gordon Campbell on the US election outcome
Well um.. on the bright side, there (probably)... more
Kiwi Success
Congratulations to Loder Cup winner
26 Sep 2018 People
25 SEPTEMBER 2018
The Loder Cup, one of New Zealand’s oldest conservation awards, has been awarded to Robert McGowan for 2018... more
Appointments to New Zealand National Commission for UNESCO
16 Aug 2018 Appointments
16 AUGUST 2018Appointments to New Zealand National Commission for UNESCO
HON JENNY SALESA
Associate Education Minister Jenny Salesa is... more
Recruitment
Historic pay equity settlement for education support workers
14 Aug 2018 Recruitment
14 AUGUST 2018Historic pay equity settlement for education support workers
RT HON JACINDA ARDERN
HON CHRIS HIPKINS
Prime Minister
The... more
Historic pay equity settlement for education support workers
22 Aug 2018 Recruitment
14 AUGUST 2018Historic pay equity settlement for education support workers
RT HON JACINDA ARDERN
HON CHRIS HIPKINS
Prime Minister
The... more