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Fonterra close to unveiling plans

The New Zealand Herald has a story about how Fonterra is expected to announce its second proposal for capital reform within the next fortnight.
 
Fonterra is facing pressure and increased competition from other dairy nations, including America, Ireland and the Netherlands.

It needs more moolah to stabilise its balance sheets against drought and other shooks and to advance its global growth ambitions into the highly lucrative ingredients and brands markets (see Paediatric and health and wellness nutrition, proteinised beverages and nutraceuticals and specialised cheeses).

The proposed restructure would be done in stages and take up to four years to achieve, says Fonterra chairman Henry van der Heyden (above right):

Dairy giant Fonterra is expected to unveil its second proposal for capital structure reform within days as the threat to its world-beating exporter status gathers pace in rival dairying countries.

Parties close to the capital structure reform plan indicated New Zealand’s biggest company would reveal the long-awaited proposal within a fortnight. READ MORE.

Speaking of the New Zealand dairy giant, Scoop has a story about how the price of milk powder jumped more tha 24% on its Cooperative Group’s online auction.  CLICK HERE to read more.

Why uranium prices aren’t soaring

The Financial Post has a story about why uranium prices have failed to reach the highs of 2007, despite experts saying the outlook for the nuclear metal is brighter than other commodities.

Big hedge funds and other sophisticated financial players were responsible for the spot price of uranium increasing by 800% between 2004 and 2007, but the financial meltdown last year has forced many of them sell their contracts.

Many utilities bought up large after the forced sales and are well stocked at the moment.

As a result, without those funds buying urnanium, the price has remained low.

Meanwhile, the article also says the increase in cooper and nickle prices is due to stockpiling and speculative investment from China, where relaxed lending standards from its banks are seeing investors take advantage to get a slice of the action:

When spot uranium prices soared to nearly US$140 a pound in 2007, critics blamed hedge funds and other financial speculators for pushing prices to absurd levels unmatched by any other commodity.

Whatever happened to those days?

Commodity prices have been on a tear since March, largely due to buying by speculators playing an economic recovery. Yet uranium – the former ground zero for speculation – is not joining in, even though many industry experts say that the outlook for the nuclear metal is better than most other commodities. READ HERE.