ASB Bank rural economist Nathan Penny does not expect much change in the current milk price forecast of $4.25/kg milksolids, although the risk is downside, perhaps as low as $3.90.
He based the steady-as-it-goes prediction on mainly static world dairy prices, more positive general economic signs and the earliness of the season.
On Monday Fonterra intended to make an initial earnings guidance for the 2017 financial year, Penny said.
Signs favoured a repeat of the range current for the 2016 financial year, being 45-55 cents a share and investment unit.
“But Fonterra’s finances are very difficult to analyse, let alone forecast, so we prefer not to indicate any specific numbers.”
After falling to a 2016 low of $5.31 a month ago, Fonterra’s Shareholder Fund market price rose to close at $5.69 on Friday, anticipating the good earnings guidance to come.
