In domestic news, Fonterra farmers are expecting a decent cut in regards to the payout today. Bank analysts largely have the payout forecast moving from the current $7 mark to as low as $6, with some saying the risk of lower than $6 also rising.
The cut is substantial. Looking at just one region, the Waikato. Based on last year’s production numbers, a $1 move equates to c.$380m hit to the Waikato economy.