Sharechat Logo

NZ commodity prices rise for third straight month; dairy, meat lead gains

Wednesday 3rd August 2016

Text too small?

New Zealand commodity prices rose for a third straight month in July, led by dairy products, aluminium and meat, although the strong kiwi dollar limited the benefits for local producers.

The ANZ commodity price index rose 2 percent last month, bringing its three-month gain to 6.9 percent. In New Zealand dollar terms, prices have gained just 2.5 percent in the past three months and are 5.7 percent lower than in the same period last year.

The release of the commodity price index follows the results of the latest GlobalDairyTrade auction, which showed the GDT price index jumped 6.6 percent to US$2,436, while the price of whole milk powder, the biggest product New Zealand sells by volume, rallied 9.9 percent to US$2,265 a tonne. Dairy rose 4.1 percent month on month in the ANZ index, with casein up 7.8 percent, butter gaining 5.2 percent and milk powder up 4.1 percent.

Meat rose 2 percent in the latest month, led by a 4.4 percent increase in lamb prices and a 2.1 percent gain for beef. Aluminium rose 2.2 percent.

"World sheepmeat prices have primarily improved because of a significant drop-off in New Zealand supply," said Con Williams, agri economist at ANZ New Zealand. "This is due to a smaller lamb crop in 2015, some re-stocking and high early season turn-off." Beef prices were helped by lower seasonal supply within the US, he said.

Seafood prices were largely unchanged, forestry prices fell 1 percent and horticulture declined 1.4 percent.

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

NZ dollar falls with Aussie after Westpac's RBA rate cut call
Intuit juggernaut grows QuickBooks subscribers but momentum slows
Reaction to Budget rules relaxation shows balance 'about right', says Ardern
Augusta lifts net profit six fold as investors flock into new funds
Annual exports to China top $15 billion for first time
Gentrack posts $8.7M loss on CA Plus write-down
Westpac says RBNZ capital proposals would add $6,000 p.a. to an Auckland mortgage
Cavalier says market conditions still challenging
Ryman hikes dividend as annual earnings grow on wider development margin
24th May 2019 Morning Report

IRG See IRG research reports