Commodity prices slip but remain high
Wool price up, beef price down. Overall commodity prices remain high.
The ANZ Commodity Price Index slipped 1.2% in June, the first monthly decline since August last year.
The index remained at a high level, recording the third highest reading since the series began.
However, the lift in the value of the New Zealand dollar compounded the drop in commodity prices, resulting in the ANZ NZ Dollar Commodity Price Index dropping 3.3%.
Seven commodities dropped in price in June, six recorded a rise and four were unchanged.
Kiwifruit and beef prices recorded the largest declines, with kiwifruit falling 9% from a month earlier, while beef prices dropped 8%.
The price of whole milk powder and skins slipped 3%, aluminium and apple prices eased 1% and log prices fell very slightly.
“The decrease in the fruit prices reflects the traditional seasonal decline, as the Northern
Hemisphere export season progresses and the price premium of the new season’s fruit is reduced,” according to ANZ’s commentary.
“The drop in beef prices reflects an oversupply of imported product into the United States. Demand had picked up late in the month, spurred on by the Fourth of July holiday weekend.”
However, the good news continued for sheep farmers, with wool prices hitting a new record high.
Wool and skim milk powder prices lifted 5% in June and venison prices rose 3%, while lamb, sawn timber and seafood prices lifted by up to 1%.
The New Zealand dollar lifted in value relative to all major trading partners. On a trade-weighted basis the exchange rate lifted 2.2%.
The NZD/AUD exchange rate lifted the most, rising 3.0% from May, to hit a six-month high on a monthly average basis.
NBR staff
Mon, 04 Jul 2011
Mon, 04 Jul 2011
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Commodity prices slip but remain high
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