Commodity prices fall to lowest level since March 2010
Commodity prices tumble, led by dairy products such as milk powder, as Europe's debt crisis weighs on global prices.
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BUSINESSDESK: New Zealand commodity prices fell to the lowest level in more than two years in June, led by dairy products such as milk powder, as Europe’s debt crisis weighs on global prices.
The ANZ Commodity Price Index fell 2.4% last month to its lowest level since March 2010, the fifth straight monthly decline. Whole milk powder fell 7%, leading a 4% slide in prices of dairy products.
Fonterra, the world’s largest exporter of dairy products, cut its forecast 2012 milk price in May and flagged the prospect of lower payments for 2013 in the face of weaker global commodity prices.
Farmers have been shielded from the full impact of the decline as they are coming off a season of record production, which is not expected to be repeated next season.
Dairy prices have fallen to their lowest level in 33 months, according to the ANZ index.
Aluminium fell 6% to a 32-month low and wool declined 5%. Seafood and butter fell 4% and kiwifruit dropped 3%. Casein and beef prices fell 2%, while cheese and pelts fell 1%.
Logs, apples and skim milk powder all rose 2% and lumber prices gained 1%. Lamb, wood pulp and venison prices were unchanged in the month.
The NZD Commodity Price Index fell 3.4% in June, reflecting a strengthening kiwi dollar.
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Commodity prices fall to lowest level since March 2010
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