NZD bullish: BNZ ups Fonterra’s milk payment forecast
The Bank of New Zealand (BNZ), in its latest report, raised the milk payment forecast for Fonterra to NZD 7.50 / kgms, in the wake of improving prices at the fortnight dairy auctions conducted by Fonterra.
Further Details:
“The NZ milk price outlook continues to improve.
Dairy prices have been firm in 2019 and have pushed higher over recent auctions.
GDT prices are heading toward the top of a trading range that has held them since 2014 and are now a chunky 26.4% higher than a year earlier.
Overall, dairy market fundamentals continue to look healthy. Indeed, we would be forecasting a higher milk price if it were not for still elevated - if down from its peak - global economic uncertainty.”
Despite the NZD-positive headline, the Kiwi fails to benefit and trade in the red around 0.6420 amid US-China trade and political tensions.
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
