Commodity prices drop for seventh month

Wednesday 4th March 2009

New Zealand commodity prices fell for the seventh straight month, led by wool, skins, seafood, aluminium and logs, in a sign that weakening world growth is eroding demand for the nation's exports.

The ANZ Commodity Price Index fell 4.6% in February, following a 4.3% drop in the previous month. Ten of the 13 commodity types weakened in February.

Wool prices fell 7.6% and skins declined 7.2%, according to the survey. Prices of beef fell 6.7%, while venison and seafood fell 2.7%. Aluminium dropped 6%, log prices fell 5.8%, lumber prices slid 4.4% and wood pulp prices dropped 1.8%.

Prices of dairy products fell 5.7% in the first half of the month though stabilized in the second half.

Falling prices come as the world's biggest economic zones - Europe, the US and Japan - slide into their first synchronised recession since WWII.

The ANZ NZD Commodity Price Index rose 1.9%, reflecting the kiwi dollar's decline, according to the report.

By Jonathan Underhill

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