Kiwi commodity prices rising
New Zealand commodity prices rose 2.1 per cent in June, the fourth monthly gain this year, led by milkfat products and sheepmeat, while wool, wholemilk powder, casein and aluminium fell and apples reversed some of the previous month’s surge.
The ANZ Commodity Price Index rose to 298 in June from 291.9 in May and was 25 per cent higher than the same month a year earlier.
The monthly increase was led by a 2.9 per cent gain in dairy prices and a 2.8 per cent gain in meat prices.
Within dairy the picture was mixed. Butter rose 12 per cent, cheese was up 8 per cent and skim milk powder gained 5 per cent, while whole milk powder fell 1.6 per cent and casein was down 0.8 per cent.
ANZ Bank New Zealand agri economist Con Williams said a “flat seasonal peak in European production as winter conditions lingered into spring has supported skim milk powder and butter prices”.
Wholemilk powder fell “as buyers awaited higher seasonal supply from New Zealand”.
Meat prices were led by lamb, which rose 4.7 per cent in June, while beef was up 1.7 per cent. Skin prices rose 3.5 per cent while wool fell 0.7 per cent, which he said reflected high inventory levels in China.
Horticultural export prices continued to advance although June’s 1.4 per cent gain was modest compared with the 12 per cent jump in May.
Kiwifruit prices rose 2.7 per cent after surging 14 per cent in May but apples fell 1.8 per cent in June, having gained 7.5 per cent in May.
“Green kiwifruit markets are very short of NZ product due to a late harvest and lower overall volumes,” Williams said. “This, combined with solid demand across major markets, has seen Zespri lift the bottom of its forecast orchard gate returns for green and push the gold forecast higher too.”
Seafood export prices rose 2.4 per cent in June, led by hoki and rock lobster. Forestry prices edged up 0.4 per cent led by Chinese demand for logs. Aluminium fell 1.5 per cent.
The New Zealand dollar index fell 1.6 per cent in June, reflecting the stronger Kiwi dollar, although Williams said it had to be seen in the context of a 20 per cent gain yearon-year.