Commodity prices up 3.5% last month, led by milk, aluminium
September shows the strongest monthly price gain in a year and a half.
(BusinessDesk) New Zealand commodity prices rose for a second month in September in the strongest monthly gain in a year and a half, led by skim milk powder and aluminium.
The ANZ commodity price index was up 3.5% last month, about 14% weaker than the same month a year ago. Excluding dairy prices, the index rose 0.5%.
The largest increase was shared by skim milk powder and aluminium, both up 11%, followed by butter and whole milk powder up 8%, wool and apple prices gaining 6%, cheese climbing 5%, venison up 2% and logs and beef rising 0.5%.
The price of pelts bucked the trend, falling 10%, with casein and kiwifruit prices down 2%. Lamb eased 1%.
In New Zealand dollar terms, the commodity price index rose for the first month in nine, up 3%.
The strong kiwi dollar has dampened the potential returns for local exporters, recently trading near its recent six-month high of 82.81 US cents.
Last week, Fonterra missed its forecast, with a 19% drop to $6.40 in its 2012 payout to farmers, reflecting lower prices for milk and a stronger kiwi and in spite of record production.
The survey comes ahead of Fonterra's fortnightly GlobalDairyTrade auction overnight in the United States.
Dairy prices rose 6% to the highest level since early April at the last auction in their third straight gain, with increases for all eight products on offer.
Hannah Lynch
Wed, 11 Jul 2018
Wed, 11 Jul 2018
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Commodity prices up 3.5% last month, led by milk, aluminium
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