NZ commodity prices fall in November, led by weak dairy
The ANZ Commodity Price Index slid 5.6% in November.
Hot Topic
Long reads
New Zealand commodity prices fell in November, led lower by weak dairy prices.
The ANZ Commodity Price Index slid 5.6% in November, snapping two months of gains. The index is 15% below year earlier levels.
November's decline was led by falling global dairy prices, which slid 9.4%. Dairy prices have weakened this year, as increased supply and lacklustre demand weigh on the market.
"The decline centred on New Zealand's key exports of milk powder and butter," ANZ Bank New Zealand agricultural economist Con Williams said in his report. "High global milk supply, general bearish commodity sentiment and fairly lacklustre import demand from China continues to weigh heavily on the market."
Cheese and casein prices were little changed, he said.
Outside of dairy products, export prices fell 1.8% in November and are 16% lower than year earlier levels, according to the report.
Beef prices slid 9.3% in the month and have dropped 24% since August as high US inventory levels built up from imports, domestic US supply increased and as competitive pressure from alternative meats weighs on consumption, the report said.
Meanwhile, wool prices declined 2.5% in November and aluminium shed 3.1%.
Prices for logs and skins advanced, bucking the trend.
Meanwhile, the decline in the New Zealand dollar Index was more muted due to a weaker kiwi dollar, down 4.5% in the month and just 1% below year earlier levels.
The lower New Zealand dollar helped deliver New Zealand dollar price rises for five commodities, ANZ said.
(BusinessDesk)
Tina Morrison
Fri, 04 Dec 2015
Fri, 04 Dec 2015
© All content copyright NBR. Do not reproduce in any form without permission, even if you have a paid subscription.
NZ commodity prices fall in November, led by weak dairy
54077