Commodity prices fall - but still high
ANZ's commodity price index fell for a fourth successive month – but prices remain high.
The index eased 1.3% in September, for a cumulative drop of 4% since they peaked in May.
However, Con Williams, ANZ rural economist, said although prices were down in both domestic and international terms during recent months, historically they were still quite high.
“The level of commodity prices in world terms is 94% higher than the long-run average.
“In New Zealand dollar terms the NZD index is 44% higher than the long-term benchmark.”
Strong commodity prices remain a key pillar of support for the economy, Mr Williams said.
Ten commodities recorded a fall in prices, while three lifted and four were unchanged.
Those to fall included apples, aluminium, butter, skim milk, logs beef, wool, cheese and sawn timber.
By contrast, seafood prices lifted half a percent for the month, while sheepmeat and skins fell a quarter of a percent.
The prices of wood pulp, casein, whole milk powder and venison were unchanged from a month earlier.
The NZ dollar weakened across the major trading currencies.
When converted into a local currency measure, the ANZ NZD commodity price index lifted by 0.4% – the first monthly rise since March.
Colin Williscroft
Mon, 03 Oct 2011
Mon, 03 Oct 2011
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Commodity prices fall - but still high
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