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.

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