NZ commodity prices fall to 21-month low in May

Friday 1st June 2012

The ANZ Commodity Price Index fell 4.2 percent to a 21 month low in May as rises in the price of apples and kiwifruit failed to offset declines in the price of wool and dairy products.

The index, at 260.8, has fallen 12 of the past 13 months. It is 18 percent below its peak, while dairy prices are 28 percent below their peak.

"The ANZ Commodity Price Index took another step down in May, with eleven commodities registering weaker prices and only four price increases being measured," ANZ economist Steve Edwards said in his report.

An 11 percent fall in the price of wool to the lowest level since September 2010 was the largest monthly decline in May.

Weaker dairy prices were also a feature. There was a 12 percent decline in the price of butter, a 9 percent fall in the price of whole milk powder, an 8 percent fall in the price of skim milk powder and a 4 percent fall in the price of casein. The price of cheese fell 2 percent.

Sheep meat prices dropped 6 percent, while the price of aluminium eased 2 percent.

Exports of the new season's braeburn crop helped lift apple prices 12 percent and kiwifruit prices lifted 7 percent as the export season geared up. Sawn timber prices increased 1 percent.

The value of the New Zealand dollar declined in May by more than the fall in commodity prices so the ANZ NZ dollar Commodity Price Index lifted by 0.8 percent.

BusinessDesk.co.nz

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