Sharechat Logo

NZ commodity prices rise in April on gains in dairy, aluminium

Thursday 3rd May 2018

Text too small?

New Zealand commodity prices rose in April, bolstered by dairy prices and a lift in aluminium prices on the back of trade tensions.

 

The ANZ commodity price index increased 1 percent in April and is up 7.1 percent from a year earlier.  In New Zealand dollar terms, the index gained 1.2 percent in April and 5.8 percent on the year.  

 

Dairy prices rose 2.7 percent on the month in April due to a range of influences. One of the most influential appears to be sluggish European production across some of the larger export regions, ANZ agri economist Con Williams said.  Lower seasonal supply from New Zealand and broad-based demand also lifted prices. According to Williams, Chinese participation at GDT auctions has increased back above the 50 percent level, which usually leads to higher prices. Also, Middle East buying looks like it could be getting a boost from improved oil prices, and Algerian powder demand remains high given domestic shortages, he said.

 

Aluminium prices jumped 8 percent versus the prior month trade and geopolitical tensions. China’s clampdown on excess production and capacity restrictions to improve air quality continue to support prices, said Williams. "However, the real boost was provided by US sanctions on Russia, which included limiting trade with one of the world’s largest aluminium producers, Rusal," he said. 

 

Meat and fibre prices were down 1.9 percent as beef prices fell 4.2 percent on increased manufacturing beef supplies from New Zealand, Australia and the US.  Wool prices, however, were up 2.6 percent on the month, driven by bargain hunting. 

 

Forestry prices rose 0.2 percent on the month, marking 20 months of consecutive gains. 

 

(BusinessDesk)



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
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:

SML - Synlait Milk Limited - Trading Halt of Securities
AIA - Auckland Airport announces board chair changes
AIA - Auckland Airport announces board chair changes
CEN - Tauhara commissioning progress update
FPH initiates voluntary limited recall
March 28th Morning Report
KFL Celebrates 20 Years of Excellence in Investment Mgmt.
SVR - Savor FY24 Earnings Guidance & Change in Banking Partner
NZK - NZ King Salmon Investments Limited FY24 Results
March 27th Morning Report