23 Feb 2015
Fonterra’s 2014/15 milk price forecast: Announcement rumoured this week - BNZ
FXStreet (Bali) - According to Bank of New Zealand, an announcement by Fonterra updating its 2014/15 milk price forecast is rumored for this week, noting that upside potential is forming.
Key Quotes
"As for Fonterra’s 2014/15 milk price forecast, an announcement is rumoured to happen this week (with speculation centred on Wednesday morning, but perhaps as early as Tuesday)."
"The question is; will the dairy co-op revise up from its previously indicated $4.70? We think probably not, at this juncture."
"While the rebound in dairy prices has been significant it’s been mostly in the nature of a relief, rather than a big bonus, with reference to payout promises."
"Still, upside potential is forming. This is manifest in us wiggling our expectations for the 2014/15 milk price to $4.80, from $4.50, while, more encouragingly for farmers eyeing a return to normal profitability, bumping up our forecasts for 2015/16 to $6.00, from $5.70."
Key Quotes
"As for Fonterra’s 2014/15 milk price forecast, an announcement is rumoured to happen this week (with speculation centred on Wednesday morning, but perhaps as early as Tuesday)."
"The question is; will the dairy co-op revise up from its previously indicated $4.70? We think probably not, at this juncture."
"While the rebound in dairy prices has been significant it’s been mostly in the nature of a relief, rather than a big bonus, with reference to payout promises."
"Still, upside potential is forming. This is manifest in us wiggling our expectations for the 2014/15 milk price to $4.80, from $4.50, while, more encouragingly for farmers eyeing a return to normal profitability, bumping up our forecasts for 2015/16 to $6.00, from $5.70."