New Zealand commodity prices fell for a second month in April, with dairy leading the decline.
The ANZ Commodity Price Index dropped 4 percent to 323.7, the lowest in eight months, with dairy products driving the decline. The index was 2.8 percent below its level in April 2013, the first annual decline since February last year.
Butter prices sank 14 percent, while skim milk powder dropped 12 percent and whole milk powder fell 10 percent. Cheese prices declined 4 percent. Prices for pelts dropped 14 percent, while beef prices slipped 1 percent and casein prices decreased 0.25 percent.
"The fall was dairy-centric, with dairy products accounting for three of the four largest falls," ANZ New Zealand economist Steve Edwards said in a note.
Dairy prices on Fonterra Cooperative Group's GlobalDairyTrade platform sank to a 14-month low in April, raising speculation the dairy exporter may not be able to stick to a forecast record payout of $8.65 per kilogram of milk solids.
Of the six commodity prices to gain, aluminium was the biggest, up 6 percent, followed by a 3 percent increase in sheepmeat prices, and a 1 percent rise in prices for wood pulp, seafood and wool. Lumber prices increased 0.25 percent. Prices for logs, kiwifruit, apples and venison were unchanged in April.
In New Zealand dollar terms, the index dropped 5 percent in April, and was down 3.6 percent on an annual basis.
This article is tagged with the following keywords. Find out more about MyNBR Tags
Most listened to
- Zero Emission Vehicle's Andrew Rushworth says his company may have been naïve in expecting that all it would need to do is demonstrate its trucks and buses work and that they're as cost-effective as their diesel counterparts
- Restaurant Brands general manger of sales and marketing Geraldine Oldham talks about the "salacious" Carl's Jr ad
- Who are the winners and losers in Labour's re-shuffle? Rob Hosking explains
- Head-to-head: Federated Farmers director Katie Milne and SAFE executive director Hans kriek debate dairy industry's treatment of bobby calves
- Full Flavour managing director Jesse Archer says Ultra Fast Fibre gave him the "two fingered salute"