NZD falls on comments from Fonterra
Fonterra maintains its forecast for milk at NZ $4.70. There was some talk yesterday (from Westpac) that they could hike the estimate.
"Although
dairy commodity prices had gone up, the increase was not sufficient to
raise the forecast farmgate milk price at this time," they said. "Since
December, GDT prices for whole milk powder have increased 45% and skim
milk powder prices have increased 13%," they said.
They caution that by saying volumes are down due to 'climatic conditions'.
The kiwi declined initially but the accompanying talk of higher prices tempered the move. NZD/USD last at 0.7544. Last week's high of 0.7573 is capping the upside.
