Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


NZ commodity prices fall for 5th month, led by milk powder

NZ commodity prices fall for fifth straight month, led by milk powder

By Jonathan Underhill

Aug. 4 (BusinessDesk) - New Zealand commodity prices fell for a fifth straight month in July, led by whole milk powder, reflecting a build-up of inventory in China and a strong milk production season for dairy farmers.

The ANZ Commodity Price Index declined 2.4 last month and is now 9.8 percent below its February peak, while milk powder tumbled 12 percent and dairy product prices fell more broadly.

The slide in global dairy prices this year prompted Fonterra Cooperative Group to slash its forecast farmgate milk payout for 2015 to $6 a kilogram of milk solids, from an initial estimate of $7/kgMS. It also attributed the decline in dairy prices to a build-up of inventory in China but expressed some confidence that prices would recover at some stage. Westland Milk Products cut its forecast payout two days later.

ANZ Rural economist Con Williams said lower prices for whole milk powder have begun to weigh on prices of other dairy products. Last month butter fell 6.8 percent, cheese and skim milk powder were down 2.9 percent and casein fell 2 percent.

Among other export commodities, apples fell 4.3 percent as softer demand in Europe was partly offset by better returns from Asia. Logs declined 2.7 percent and wood declined 2.4 percent.

Among gainers, beef jumped 11.3 percent on a shortage of domestic beef for manufacturing in the US, Williams said. Aluminium rose 5.5 percent, kiwifruit gained 0.9 percent and sheepmeat rose 0.4 percent. The meat sub-group reached a record while aluminium is up 9.5 percent year on year and seafood has gained almost 6.9 percent.

The ANZ NZD Commodity Price Index, which shows the price movements in New Zealand dollars, fell 3.5 percent, reflecting a stronger kiwi dollar when it peaked at 88.35 US cents in the first half of the month.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Sky City : Auckland Convention Centre Cost Jumps By A Fifth

SkyCity Entertainment Group, the casino and hotel operator, is in talks with the government on how to fund the increased cost of as much as $130 million to build an international convention centre in downtown Auckland, with further gambling concessions ruled out. The Auckland-based company has increased its estimate to build the centre to between $470 million and $530 million as the construction boom across the country drives up building costs and design changes add to the bill.
More>>

ALSO:

RMTU: Mediation Between Lyttelton Port And Union Fails

The Rail and Maritime Union (RMTU) has opted to continue its overtime ban indefinitely after mediation with the Lyttelton Port of Christchurch (LPC) failed to progress collective bargaining. More>>

Earlier:

Science Policy: Callaghan, NSC Funding Knocked In Submissions

Callaghan Innovation, which was last year allocated a budget of $566 million over four years to dish out research and development grants, and the National Science Challenges attracted criticism in submissions on the government’s draft national statement of science investment, with science funding largely seen as too fragmented. More>>

ALSO:

Scoop Business: Spark, Voda And Telstra To Lay New Trans-Tasman Cable

Spark New Zealand and Vodafone, New Zealand’s two dominant telecommunications providers, in partnership with Australian provider Telstra, will spend US$70 million building a trans-Tasman submarine cable to bolster broadband traffic between the neighbouring countries and the rest of the world. More>>

ALSO:

More:

Statistics: Current Account Deficit Widens

New Zealand's annual current account deficit was $6.1 billion (2.6 percent of GDP) for the year ended September 2014. This compares with a deficit of $5.8 billion (2.5 percent of GDP) for the year ended June 2014. More>>

ALSO:

Still In The Red: NZ Govt Shunts Out Surplus To 2016

The New Zealand government has pushed out its targeted return to surplus for a year as falling dairy prices and a low inflation environment has kept a lid on its rising tax take, but is still dangling a possible tax cut in 2017, the next election year and promising to try and achieve the surplus pledge on which it campaigned for election in September. More>>

ALSO:

Job Insecurity: Time For Jobs That Count In The Meat Industry

“Meat Workers face it all”, says Graham Cooke, Meat Workers Union National Secretary. “Seasonal work, dangerous jobs, casual and zero hours contracts, and increasing pressure on workers to join non-union individual agreements. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news