22 Jan 2015
NZ dairy: Source of downside potential for Kiwi in 2015 - ANZ
FXStreet (Bali) - According to ANZ, the NZ dairy sector remains a source of downside potential for the NZ economy, and hence the NZD for 2015.
Key Quotes
"ANZ has dropped its forecast for the 2014-15 payout again to NZD4.35 kg/ms and lowered our expectation for the starting payout for the 2015 season to NZD5.75 kg/ms."
"The lack of rebound in prices is a partial driver of this change, as a rebound — by the end of the season — in whole milk powder to USD3,500/tonne is required to meet the prior forecast."
"This lower payout and lower starting point for next season will ensure that the NZ dairy sector remains a source of downside potential for the NZ economy, and hence the NZD for 2015."
Key Quotes
"ANZ has dropped its forecast for the 2014-15 payout again to NZD4.35 kg/ms and lowered our expectation for the starting payout for the 2015 season to NZD5.75 kg/ms."
"The lack of rebound in prices is a partial driver of this change, as a rebound — by the end of the season — in whole milk powder to USD3,500/tonne is required to meet the prior forecast."
"This lower payout and lower starting point for next season will ensure that the NZ dairy sector remains a source of downside potential for the NZ economy, and hence the NZD for 2015."