Commodity prices surge

Thursday 3rd September 2009

New Zealand commodity prices rose for a sixth straight month, posting the largest gain since November 2007 as aluminium, pelts, lumber, wool and dairy advanced.

The ANZ Commodity Price Index rose 4.3% in August and has gained 12% from its low in February. Prices rose for seven of the commodities monitored, four fell and two were unchanged.

The monthly ANZ series comes as companies say they’ve seen the bottom in their markets. NZ Farming Systems Uruguay chairman Keith Smith last week said while uncertainty remains over milk prices, “present expectations are for gradual improvement over the course of the coming year.”

Milk powder jumped 24% in Fonterra Cooperative Group’s online auction this month.

Aluminium and pelts rose 15% in August from July, according to the ANZ report.

Lumber gained 8%, wool rose 7% and dairy gained 5%. Logs rose 4% and seafood gained 1%.Among decliners, kiwifruit fell 3% and apples dropped 1%. Beef fell 0.3% and lamb prices declined 0.5%.

Wood pulp and venison were unchanged.

The NZD Commodity price Index fell 0.7% in August as a stronger kiwi dollar erased the gains in world commodity prices.

Businesswire.co.nz

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