Fonterra milk prices on the up

The National Business Review has a story about how Fonterra’s milk powder prices on its online auction are up 5.7%  or $US3022 a tonne from last month.

Again, the high Kiwi dollar wipped out most of the gain.

The NBR’s story includes comment from Fonterra Global Trade managing director Kelvin Wickham:

Whole milk powder prices surged further on the back of Fonterra’s latest online auction early this morning.

Prices averaged $US3022 a tonne, up 5.7% against last month’s trading event.

This flies in the face of global analyst predictions last month that forecast a drop in the average price which has climbed about 65% since July. CLICK HERE to read more.

NZ commodies record biggest price rise in 22 years

The New Zealand Herald has a story about how the ANZ Commodity Price Index rose 6.8% in September – its largest monthy price gain in 22 years. 

However, most of that gain was wipped out by the rise in the New Zealand dollar.

Dairy prices recorded the biggest gain, up 17%, while sawn timber (7.2%) and wool prices (5.3%) also had siginificant increases.

Smaller increases were noted for wood pulp (3.1%), lamb (2.3 %), beef (2.2%) and kiwifruit (0.4%).

The Story includes comment from ANZ economist Steve Edwards. CLICK HERE to read full story.

High NZ Dollar impacting meat and dairy exporters

The Otago Daily Times has a story about how the high exchange rate of the New Zealand Dollar (NZX50) is impacting on meat and dairy exporters like Fonterra and  Alliance Group in New Zealand:

The often-touted export-led recovery could be threatened by a soaring exchange rate which some economists believe could reach US69c. At 5pm yesterday, the currency was trading at US67.33c having opened at US66.99c. READ MORE.