Here's my summary of the key news overnight in 90 seconds at 9 am, including news there has been a stunning rise in skim milk powder prices. But first ...
In China, an unexpected surge in lending in March defied Beijing's efforts to mop up liquidity and presents China's new leaders with a difficult choice to either risk slowing growth now or suffer a credit crisis down the road. The surge was fueled by currency inflows which saw a rise in foreign exchange reserves that reached US$3.4 trillion by the end of March. One to watch.
In Europe, it has been revealed overnight that the Cyprus bailout could cost €23 billion, about a third higher than the original estimate. Most of Cyprus's 14 tonnes of gold has been seized by creditors now.
Australia’s unemployment rate climbed in March to the highest level in more than three years and the number of people employed actually fell slightly. That sent the Aussie dollar falling and bond yields lower as traders added to bets the central bank will resume interest rate cuts.
All these moves have propelled the Kiwi dollar ever higher - as it has done every day this week. Overnight traders piled in to the Kiwi currency, at one point late last night raising the TWI to 79.5 although it has settled back a little this morning from that record high. It is eye-watering and high-wire stuff and the risks are very high. Wobbles will hurt.
But the price of dairy products in international trade is still streaking higher. Overnight, the USDA reported that skim milk powder prices rose 36% in US dollar terms in just two weeks ! That's a rise far higher than our currency is gaining. Other milk products also saw rises that would have been worth a mention but they pale compared to the spectacular skim milk powder price change.
The Kiwi dollar starts today at 86.3 USc, the highest since July 2011, 81.8 AUc, 86.2 Japanese yen, and our TWI is at yet another record post-float high of 79.27.
No chart with that title exists.
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If you like The Beach Boys: Ode to Dairy Farmers https://www.facebook.com/photo.php?v=4415381116789
Here's my contribution CasO
http://www.youtube.com/watch?v=Kbc9bAcamHs
if you get time check out Rock me mama like a Wagon Wheel (same guy Holstien) ...(actually a good song, great voice too.)
And may you always have some cows around......ooooh speaking of which here she comes!
Stephen they say
Last year the Council decided that work andexpenditure that was required because of theexpansion of dairy farming in Southland shouldbe charged directly to the dairy industry by wayof the dairy differential rate, instead of being paid for by the general rate. Last year thatcost was $1.21 million. To give dairy farmers the opportunity to budget for this significant increase, the Council resolved to make a one-off injection of $700,000 from reserves last year. The removal of the injection means that the amount collected from the dairy differential rate this year will rise from $512,to $1.238 million. http://www.es.govt.nz/media/27310/draft_annual_plan_summary_2013-14_for… If ES is going to adopt a 'user pay' system, they should apply it to all ratepayers. They are rorting the dairy industry over this. They blame dairy for the water problems in Southland then this came out today regarding Waituna Lagoon relating to the Northern Zone soil type: Thick mineral soils and slow infiltration rates play an important role in the removal of soil contaminants associated with intensive farming. Excluding tile drainage, which is elevated in nutrients, shallow aquifers across this zone show little impact from intensive land use. What the rest of this Waituna Lagoon Update goes on to say is that the three different soil zones in the catchment behave differently. http://www.es.govt.nz/media/27871/waituna_14_web.pdf
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