Commodity prices take another knock

Last updated 18:01 04/08/2014

Relevant offers


Receivers to close seven NZ Pumpkin Patch stores, 57 job losses Cathay Pacific A350, world's newest airliner, lands in Auckland Charges laid in US over India-based phone scam won't stem tide for Kiwis - NetSafe Friends-themed cafe in Singapore causes outrage with $1000 membership The young Kiwis making millions Edendale milk silo collapse cost set to hit $45 million - Mercer Money tool for the blind released by Reserve Bank Software from failed firm Wynyard underpins sex offender register and major police investigations The Warehouse swings pose risk of 'serious injury' Qantas ratchets up excess baggage fees by 75 per cent

Commodity prices have fallen for the fifth month in a row, with a 2.4 per cent drop in ANZ’s latest measure of  key exports, with milk powder taking the biggest knock in July.

But world prices for beef were up 11.3 per cent last month.

Overall, the ANZ Commodity Price Index is now down 9.8 per cent from its peak in February.

The index measures a basket of key exports in world price terms. Because of a stronger New Zealand currency in July, the New Zealand dollar index for commodities was down 3.5 per cent, and showing a fall of 11.6 per cent for the year.

In July, prices for ten commodities fell, while five commodity prices went up and two were unchanged in world price terms.

The biggest drop was for whole milk powder which dropped 12 per cent and is now down 53 per cent on a year ago.

That was mainly because of an overhang of inventory in China and a good production year in New Zealand.

The index also showed drops for butter, down 6.8 per cent, cheese down almost 3 per cent and skim milk powder down just as much.

Apple prices fell 4.3 per cent because of lower demand in Europe, though that was offset somewhat by better returns in Asia.

In contrast to lower dairy product prices, beef was up 11.3 per cent in the month, driven by a shortage of domestic manufacturing beef in the United States during a period of peak demand over the northern summer.

Demand from the US food service sector had also bounced back with better economic growth, ANZ said.

Overall meat prices are up 21 per cent on a year ago.

Aluminium prices were up 5.5 per cent in July as the market expected further capacity cuts in China and the rest of the world. Aluminium prices are now up almost 10 per cent in the past year.

Ad Feedback

- Stuff


Special offers

Featured Promotions

Sponsored Content