BNZ cuts it forecast for Fonterra's dairy payout to $NZ3.80/kg

  • For 2015/16

Headlines on Bloomberg

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More detail:

  • From $4.30 most recently

BNZ cite:

  • Ongoing global milk supply expansion
  • Higher than anticipated WMP inventory in China raising questions of underlying demand
  • USD strength and EUR weakness
  • The extension of the Russian trade ban on many Western dairy products
  • General weakness in commodity markets and associated rise in risk aversion

BNZ do say, though ... "Our view also includes recovery from late 2015"

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The next Fonterra Board meeting is August 7. Fonterra current forecast is at $5.25

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Update ... NZD barely budging on this poor news ... in fact its up a little:

When something doesn't fall on bad news it's a reasonable bet to go with it higher

No guarantees, of course (what is it they say? 'If you want a guarantee, buy a toaster'), just a reasonable bet.

You know the 2 questions, right?

What should it do? Is it doing it?