NZD: Fonterra reduced its farmgate milk price - TDS

Research Team at TDS, notes that the Fonterra reduced its farmgate milk price for the 15/16 season from NZ$4.15/kgMS to NZ$3.90, to a 9yr low, supporting an easing bias but not a cut on Thursday for the RBNZ.

Key Quotes

“With EPS of 45-55c means a total payout of NZ$4.35-NZ$4.45. A high NZD and elevated supply from Europe weigh on local milk prices.

Q4 Manufacturing rose 1.3%/qtr, supporting our call for Q4 GDP at +0.8%/qtr (released Mar 17).”