NZ commodity price index holds steady in February as falls match rises

Friday 2nd March 2012

The ANZ commodity price index of New Zealand exports was unchanged during February, with declines in some areas balanced by gains in others.

Dairy prices in aggregate fell 1 percent, seafood dropped 4 percent and the price of skins recorded the largest fall of 10%. Venison prices also dropped 3 percent. This means seafood prices are now at a 13-month low, wool’s back to an 11-month low and skins and casein prices both dropped to 10-month lows.

The overall index was held in balance by logs lifting 4 percent, as aluminium, beef and kiwifruit prices all gained 3 percent and lamb lifted 1 percent. Beef had its third successive monthly price increase, and is now at a record new high.

A strengthening New Zealand dollar against all the country’s trading partners saw a 1985 post-float high against the pound and the euro.

This translates into a weakening of the ANZ NZ Dollar Commodity Price Index of 4 percent in February, dropping to a two-year low for this series.

ANZ economist Steve Edwards said while the NZ dollar-priced series has now fallen 17% from its March 2011 peak, it remains 13% above its post-2000 average.

Edwards made special note of a 24% easing in wood pulp prices over the past six months, following two years of increasing prices for the paper-making raw material. In the 12 months to January 2012, wood pulp exports totalled $660 million.

This represents 15% of all New Zealand’s forestry-related exports or 1.4% of the country’s total merchandise exports.

BusinessDesk.co.nz

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