Fonterra lifts forecast payout

Fonterra lifts forecast payout

Fonterra has lifted the 2016/17 forecast Farmgate Milk Price by $0.50 to $5.25/kg of milk solids.

The key points are:
Increases 2016/17 forecast Farmgate Milk Price by 50 NZ
cents to NZ$5.25 per kg milk solids
When combined with forecast earnings per share range for the
2017 financial year of NZD$0.50 to NZD$0.60, total payout
available to farmers in current season is forecast to be
NZD$5.75 to NZD$5.85 before retentions.
Global milk supply has continued to reduce and demand has remained stable
NZ milk collection is currently more than 3% lower than last season, while milk production in the EU is beginning to flatten out.
“While we have seen some improvement in GDT auction prices
recently, the high NZD/USD exchange rate is offsetting some
of these gains”
The NZD is little changed in response.

The US Federal Reserve has an interest rate decision meeting early tomorrow morning, followed by the RBNZ Official Cash Rate decision. Both central banks are expected to maintain rates at the status quo, although great interest and analysis will be placed upon their respective statements.

The current indicative rates are:

NZDUSD 0.7300 / 0.7325
NZDEUR 0.6545 / 0.6570
NZDGBP 0.5620 / 0.5645
NZDJPY 74.25 / 74.50
NZDAUD 0.9665 / 0.9690

ends

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