NZ commodity prices extend gains; aluminium, lamb rise

Tuesday 5th May 2009

New Zealand commodity prices posted their strongest monthly gains in almost two years, led by increases for aluminium and lamb.

ANZ Commodity Price Index rose 2.5% in April, the second straight monthly gain. It follows a 1% rise in March.

Consecutive rises were recorded in the prices of wool, beef, sheep meat, dairy and aluminium. Aluminium rose 6.6% and lamb gained 6.4%. Beef prices rose 3.2%, venison 1.6%, dairy 3.1%, and skin and wool rose 2.3% and 1.3% respectively.

Apple prices fell. The fruit is being sold at prices 4.2% lower than last season’s closing prices. Seafood fell 2.9% and logs dropped 2%.

“Sheep meat prices have bucked the general trend of weakening commodity prices and have risen steadily over the past two years – and currently sit at a record high,” said ANZ economist Steve Edwards.

This reflects a global tightening in the global supply of sheep meat, he said.

In the year to June 2008, NZ sheep meat exports totalled $2.5 billion, making up 6 per cent of New Zealand’s total merchandise trade, he said.

The kiwi dollar rose against all its major trading partners last month, up 5.5% on a trade-weighted basis and 7.4% against the US dollar. Because the strength of the kiwi dollar was greater than the rise in world commodity prices, the NZ dollar index dropped 2.8%.

Businesswire.co.nz

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