Global prices for dairy, meat near normal levels

Global prices for New Zealand dairy and meat are coming back to more normal levels after soaring during the pandemic. After their bumper run over the past 18 months, global commodity prices in US dollar terms have pulled back to more normal levels, mostly due to weaker demand from China, according to ASB’S weekly commodity report. ASB’S US dollar Commodity Price Index is now at its lowest level in about 21 months and is sitting only about 4% above its long-run average. That’s in contrast to its peak earlier in the year, when prices in US dollar terms were 25% to 30% above normal levels. But a decline in the New Zealand dollar is holding up prices for local exporters.