Edition:
United Kingdom

Charlotte Greenfield

UPDATE 1-Global dairy prices fall for fourth auction in a row on boosted supply

02 Oct 2018

* Dairy prices dip 1.9 pct * Increased supply putting pressure on prices * Demand remains strong, especially from Asia - analyst (Recasts; adds analyst quote, market reaction) By Charlotte Greenfield WELLINGTON, Oct 3 Global dairy prices fell for the fourth time in a row at an auction held early on Wednesday as ramped-up supply outpaced robust demand. The GDT Price Index dipped 1.9 percent, with an average selling price of $2,901 per tonne at the fortnightly auction. The index had fallen 1.3 percent at the previous sale. Prices for the most widely traded item, whole milk powder (WMP), fell 1.2 percent, much further than futures market expectations of a roughly 0.4 percent drop. A strong recovery in production out of New Zealand, the world's largest dairy exporter, was pushing down prices even as demand, particularly from Asia, climbed. "Demand for WMP was high ... North Asia (which includes China) bought more than half of the WMP that was sold," said Amy Castleton, dairy analyst at NZX. "China is likely to be buying product to ship in December at this time so that it lands during the period in which a lower tariff rate applies, from 1 January 2019." Overall, a total of 41,981 tonnes was sold at the latest auction, an increase of 7.3 percent from the previous one, the auction platform said on its website. The auction results can affect the New Zealand dollar as the dairy sector generates more than 7 percent of the nation's gross domestic product. The kiwi currency fell from around $0.6608 to $0.6590 in the hours after the auction. GDT Events is owned by New Zealand’s Fonterra Co-operative Group Ltd , but operates independently from the major dairy company. The New Zealand milk co-operative, which is owned by about 10,500 farmers, controls nearly a third of the world dairy trade. U.S.-listed CRA International Inc is the trading manager for the Global Dairy Trade auction. A number of companies, including Dairy America and Murray Goulburn , use the platform to sell milk powder and other dairy products. The next auction is scheduled for Oct. 16. (Reporting by Charlotte Greenfield Editing by James Dalgleish)

New Zealand regulator halts Tegel's purchase of land for huge chicken farm

01 Oct 2018

WELLINGTON New Zealand's overseas investment regulator on Monday turned down an application by Tegel Group Holdings Ltd to buy land on which it planned to build a huge chicken farm in the country's north.

UPDATE 1-NZ regulator halts Tegel's purchase of land for huge chicken farm

01 Oct 2018

WELLINGTON, Oct 1 New Zealand's overseas investment regulator on Monday turned down an application by Tegel Group Holdings Ltd to buy land on which it planned to build a huge chicken farm in the country's north.

NZ regulator halts Tegel's purchase of land for huge chicken farm -company

01 Oct 2018

WELLINGTON, Oct 1 New Zealand's overseas investment regulator on Monday turned down Tegel Group Holdings Ltd application to buy land on which it planned to build a huge chicken farm in the country's north, the firm said.

UPDATE 2-NZ central bank in neutral as its holds rates at record low

27 Sep 2018

* Global trade tensions adding to risk outlook -governor (Adds detail on Asia central banks, updates market reaction)

UPDATE 1-NZ business confidence bounces from decade low in Sept, still in the red

26 Sep 2018

* Improvement reduces risk of slowing economic growth - economist (Recasts, adds detail, economist comment)

New Zealand's quarterly growth hits fastest in two years, but challenges loom

20 Sep 2018

WELLINGTON New Zealand's economy grew at its fastest in two years last quarter, a surprise result in a gloomy business climate that could spare the central bank from any need to raise the prospect of a rate cut at its monetary policy meeting at the end of the month.

UPDATE 1-Global dairy prices fall for third time in a row, despite signs of robust demand

19 Sep 2018

* Global dairy prices drop 1.3 pct * Third fall in a row * Beats market expectations on strong demand despite increased supply (Recasts, adds analyst comment and market reaction) By Charlotte Greenfield WELLINGTON, Sept 19 Global dairy prices fell at the third fortnightly auction in a row early Wednesday as New Zealand's supply of key products ramped up. The GDT Price Index dipped 1.3 percent to an average selling price of $2,934 per tonne, after falling 0.7 percent at the previous sale. The drop was led by a 3.5 percent fall in cheddar prices and a 1.8 percent easing in values for whole milk powder (WMP), the most widely traded item. However, that was less than the 4.7 percent fall in WMP prices expected by futures markets, as New Zealand dairy producer Fonterra had signaled increased supply after recovering from bad weather that had hampered production at the start of the year. "WMP prices were therefore expected to come down due to the supply pressure," said Amy Castleton, dairy analyst at AgriHQ. The amount of WMP sold lifted 5 percent, led by North Asian buyers, suggesting strong demand and limiting downward price pressure even as supply expanded. In total, 39,143 tonnes was sold at the latest auction, up 0.9 percent from the previous one, the auction platform said. Ongoing weakness in dairy prices prompted New Zealand's Synlait Milk on Thursday to trim its forecast payout to farmers to NZ$6.75 per kgms from NZ$7.00 per kgms set earlier, in the wake of a similar payout cut by Fonterra. The auction results can affect the New Zealand dollar as the dairy sector generates more than 7 percent of the nation's gross domestic product. The kiwi currency edged down in the hours after the auction from around $0.6598 to $0.6575 but by morning had made up most of those losses to trade around $0.6592. GDT Events is owned by New Zealand's Fonterra, the world's largest dairy exporter, but operates independently from the parent company. U.S.-listed CRA International Inc is the trading manager for the twice-monthly Global Dairy Trade auction. A number of companies, including Dairy America and Murray Goulburn , use the platform to sell milk powder and other dairy products. The next auction is scheduled for Oct. 2. (Reporting by Charlotte Greenfield; Editing by Richard Chang)

UPDATE 2-NZ's Fonterra posts first annual loss as higher milk costs bite

13 Sep 2018

* Announces asset review, starting with stake in China's Beingmate (Recasts, adds CEO and analyst comment, market reaction)

New Zealand's NZX partners with Nasdaq in push for listings

12 Sep 2018

WELLINGTON NZX Ltd has signed a deal with U.S. exchange Nasdaq Inc to explore opportunities in dual listings and depository receipts, as the New Zealand bourse looks to attract share sales by providing greater access to overseas markets.

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