Commodity prices continue falling
Down for the fifth month in a row, but still well above historic average
The latest commodity price figures show a fifth consecutive monthly drop.
Today’s ANZ Commodity Price Index records a 3.5% fall in October, the largest monthly decrease since February 2009, in the depths of the global financial crisis.
Cumulatively, the index has dropped 7.9% since it peaked in May.
The largest drop was the seasonal fall in kiwifruit prices, which fell 17%. The largest overall fall –because of the volume – is in the range of dairy products. Cheese prices were down 7%, skim mild powder and butter both fell 6%, whole milk prices fell 4% and casein prices fell 1%.
Other falls were in aluminium, down 5%, and beef, down 4%.
The only products which recorded a rise were wool and skins, up 3% and 1% respectively.
This latest fall takes the indices, expressed in “world” and New Zealand dollar terms, back to the start of the year, said ANZ Bank economist Steve Edwards.
That though is still significantly above the historical average of both indices, he said. (see graph).
Rob Hosking
Tue, 01 Nov 2011
Tue, 01 Nov 2011
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Commodity prices continue falling
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