Bernard Hickey details the key news overnight in 90 seconds at 9 am in association with BNZ, including news overnight that milk powder prices fell a further 8.3% in Fonterra's monthly internet auction.
Prices are now down 24% from their April peaks in US$ terms and are down 28% in New Zealand dollar terms.
Fonterra forecast a payout of up to NZ$8/kg in late May as long as commodity prices stayed high at then current levels and the NZ dollar stayed at 68 USc.
The New Zealand dollar stood around 73.2 USc in early trade.
Expectations of a weaker than expected Fonterra payout will put another dampener on confidence in provincial New Zealand.
It will also be watched closely by the Reserve Bank as it considers what to do with the Official Cash Rate later this year.
Meanwhile, Prime Minister John Key's opposition to foreign ownership of New Zealand land seems to be firming up.
He was quoted by the Dominion Post as saying he was concerned about growing ownership of land.
Key yesterday held talks with Finance Minister Bill English on possible changes to the Overseas Investment Act to protect farms.
"I think we're making progress in this area," Key said.
"My concern is about what I see potentially unfolding and that is quite large tracts of New Zealand land coming available for sale rapidly and the consolidation of those farms in foreign hands and whether that's in New Zealand's best interests, and my view is, it's not." English's review of the act was "getting closer" to release, he said.
Figures released by the Overseas Investment Office (OIO) show there have been 235 consents for foreign investment in agricultural land approved between July 1, 2005 and July 1, 2010. The approvals were for foreign investors to buy either financial shares or physical assets on New Zealand's agricultural land. In total, more than 150,000ha of agricultural land has been approved for sale in the past five years.
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