NZ commodity prices rise for 4th straight month; wool leads
NZ commodity prices rise for fourth straight month, wool at 22-month high
Nov. 4 (BusinessDesk) - New Zealand commodity prices rose for a fourth straight month, and are now just 1.8 percent below the record set in April, as wool extended its rally to a 22-month high.
The ANZ Commodity Price Index rose 1.3 percent in October to 327.6 for an annual increase of 23 percent. In April the index reached 333.5.
Eleven of the 17 commodities tracked rose last month, five fell and one was unchanged. Wool rose 10 percent, adding to a September gain of 13 percent. Beef, aluminium, butter, pelts and wood pulp rose 3 percent, whole milk powder rose 2 percent and sheep meat and logs rose 1 percent. Seafood and casein rose about 0.25 percent.
Skim milk and kiwifruit fell 2 percent, apples were down 1 percent, cheese fell 0.5 percent and sawn timber fell 0.25 percent. Venison was unchanged for a second month.
Cavalier, the listed carpet make, said last month it was hoping the ‘main shear’ from December to early February would help alleviate high prices for coarse wool as more came to market. Managing director Colin McKenzie said drought and reduced stock numbers had combined with a seasonal low in wool availability to drive up prices.
Local producers didn’t feel the benefits of the gain in world prices of commodities because of a strengthening New Zealand dollar. The ANZ NZD Commodity Price Index fell 0.6 percent in October following a 1.1 percent decline in September, to be up 21 percent from a year earlier.