Posts tagged "ASB"

Strong market for lamb expected

[11 March/The Country] Good demand is continuing to occur from the United States and China, contributing to predictions a second season of healthy global lamb prices. Nathan Penny, ASB Senior Rural Economist reported that prices are now bottoming out although at around $7 which is a healthy level, after hitting record highs last spring. Looking...

Strong farm sector expected to help economy bounce back

[26 February/The Country] In Westpac’s monthly economic overview, the bank’s Chief Economist Dominick Stephens said key drivers of 2019 growth would be a successful farm sector and government spending. Mr Stephens said that although there was a clear economic slowdown in late 2018, he believes that the predicted momentum would be regained this year. ASB...

New, higher, dairy price cycle appears set to start

[21 February/The Country] With global dairy supply tightening with little backstop in stocks, higher prices might occur initially. ASB has set its 2019-2020 forecast at $7 per kilo milk solids. ASB Senior Rural Economist Nathan Penny says that since spring 2016, global prices had traded within a relatively narrow range following the global dairy’s ‘’super...

Warning for forestry exporters following ‘fantastic’ record year

[11 February/NZ Herald] The ASB Bank is issuing a warning to forestry exporters about to take notice of the global demand for logs beginning to trend downwards despite many experiencing record returns in 2018. An increased market share for New Zealand’s exporters, against declining market share for both Canada and the United States, has bolstered...

China watchers cautious for 2019

[23 January/Farmers Weekly] The economic slowdown in China and damage from its trade war with the United States could impact prices for New Zealand’s major export commodities this year according to analysts. Westpac senior economist Anne Boniface highlighted lamb, noting that Chinese demand for the product appears to have been little affected by the economic...

Slowing likely to weigh on prices

[12 January/Otago Daily Times] Slowing Chinese growth is likely to put pressure on New Zealand commodity prices this year, ASB senior rural economist Nathan Penny reported. This year’s outlook followed relatively positive prices throughout last year. The average level of prices last year was comfortably above the 10-year average in both USD and NZD terms....

NZ dairy production hits record in peak October month

[20 November/NZ Herald] Positive growing conditions over spring has driven NZ milk production to a record high of 271.08 million kilos of milksolids in the peak month of October, according to DCANZ data. The previous record was 270.8 million kg in October 2014. October year-on-year milk production was up 6.5 per cent while season to-date...

Lamb prices hit record highs as exports boom

[13 November/NZ Farmer] Rising export prices for lamb and a lower New Zealand dollar are seeing kiwis paying higher prices for lamb in the supermarkets in the run up to the barbecue season.  The price of a lamb chop rose 7.7% in October to $17.12 a kilo.  With sausage prices also rising, October saw the...

ASB, Greenlea claim blockchain first with meat export deal

[1 November/NZ Herald] ASB says that Greenlea Premier Meats used its new ‘single trade window’ service to process an export deal with a large Korean customer, a transaction the bank says is a landmark as the blockchain based service meant digital payment and paperwork for the deal were wrapped up in an hour. The transaction...

Bumper spring milk flow puts pressure on payout

[31 October/NZ Farmer] National milk flows are 5.6% ahead of last season as favourable weather conditions have helped production levels. The growth partly reflects the poor production achieved last year when the weather was either too dry or too wet. ASB Bank economist, Nathan Penny, said that ASB has increased its milk growth forecast from...

ASB’s milk forecast trimmed

[18 October/The Country] ASB decreased its milk price forecast by 25 cents to $6.25 due to a fall in global dairy prices. Prices dropped 0.3 percent this week, and prices had fallen at nine out of the previous 10 auctions. Individual product results were more mixed. According to ASB Senior Rural Economist, Nathan Penny, the...

Milk production growth could impact dairy prices

[4 October/The Country] According to analysts, a strong start to the dairy season was affecting prices. At the most recent GlobalDairyTrade auction, prices fell 1.9 percent which was led by a large fall in the price of fats. Anhydrous milk fat prices were down 4.4 percent, and butter was down 5.9 percent. Whole milk powder...

NZ economy may not be as slow as business confidence suggests – for now

[17 September/Stuff] Statistics New Zealand will release figures on how fast the NZ economy grew in the three months to June 30 later this week. Increased farm production during autumn may have seen strong growth in the quarter, however any disappointment could lead towards an interest rate cut. Despite headlines of weak business confidence and...

Higher dairy export prices boost terms of trade

[6 September/Radio NZ] New Zealand’s purchasing power with the rest of the world rose in the last quarter due to higher dairy prices. The terms of trade increased 0.6 percent in the three months to June. ASB Senior Economist, Mark Smith, said the terms of trade were now only 1.4 percent below the late 2017...

Fonterra set to lower 2018/19 milk price forecast

[30 August/NZ Herald] Fonterra is expected to lower its forecast $7.00 per kg milk price. It legally had to upgrade its price every three months. ASB Senior Rural Economist, Nathan Penny, said based on results since they opened at $7.00 per kg, a downgrade was almost inevitable. He added the market consensus was around $6.40...

$4.44b annual trade balance highest in nine years

[27 August/Otago Daily Times] New Zealand’s trade deficit hit a nine year high of $4.44 billion. This was mainly due to export volumes being stronger than expected. According to Statistics NZ International Statistics Manager, Tehseen Islam, oil prices and a weakened New Zealand dollar were contributing factors, and imports and exports were both up for...

Weaker kiwi raising NZ commodity prices in local terms

[20 August/Otago Daily Times] According to ASB Senior Rural Economist, Nathan Penny, a weakened New Zealand dollar is boosting commodity prices in local terms. The Commodity Price Index had lifted 8.3 percent annually in New Zealand terms. Fonterra dropped its forecast from $6.75 per kilogram of milk solids to $6.70. Mr Penny noted the Chinese...

NZ lamb prices break over $8/kg – highest on record

[5 August/NZ Herald] New Zealand lamb prices have reached their highest level ever. General Manager Livestock and Shareholder Services at Alliance Group, Heather Stacy, said the co-operative has a minimum price starting in September of $8.20 which was the highest it had ever paid. She expected prices to pull back after the traditional Christmas period....

Trade imbalance tops $4 billion in year

[26 July/Otago Daily Times] New Zealand’s annual trade deficit is over $4 billion. This was largely due to a weakening in dairy export values widening the gap. New Zealand’s annual imports increased by $6.02 billion whereas exports rose by $5.65 billion. ASB’s Senior Rural Economist, Nathan Penny, said the balance was weaker than expected and...

‘Bumper’ wine harvest could affect prices

[23 July/The Country] A bumper 2018 wine harvest wold support export volumes and value, but could put downward pressure on prices. According to ASB Senior Rural Economist, Nathan Penny, another potential issue is the trade tensions between the UK, Europe, U.S. and China where the demand for New Zealand’s luxury status wine could fall. He...

MPI will face ‘don’t give a damn’ attitude on M. Bovis, farmer says

[28 May/NZ Herald] The Ministry for Primary Industries will get a don’t give a damn attitude from some farmers as it attempts to eradicate Mycoplasma bovis according to a Southland farmer, following the Government’s announcement of an eradication strategy. Lumsden Farmer, Ben Walling, said he thought it was the right call to attempt to eradicate...

Economic growth takes a hit due to weather

[16 March/Otago Daily Times] Weather related events over the last three months have affected economic growth. Gross Domestic Product increased by 0.6 percent in the three months ended December which was weaker than most forecasts suggested. Growth was also impacted by the fall in NZD/USD exchange rate. According to Statistics New Zealand, higher activity in...

Meat, dairy soften sales total

[10 December/ NZ Herald] Data from Statistics New Zealand showed the volume of all manufacturing sales rose a seasonally adjusted 0.3 percent for the quarter, while the value increased 0.5 percent. ASB Senior Economist, Jane Turner said the increase was small compared to other periods due to the weak meat and dairy sales volumes. Ms...

Analysts expect Fonterra to lower its forecast payout before Christmas

[23 November/ Stuff] Federated Farmers remained optimistic that Fonterra’s forecast price of $6.75 per kilogram of milk solids would be maintained in December, unlike most other analysts who believed it would decrease to around $6.50 per kilogram. If the price did decrease to this level, it would mean a reduction of almost $500 million for...