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

 


NZ commodity prices fall for 6th month in August, ANZ says

NZ commodity prices fall for 6th month in August, as dairy prices slide

By Suze Metherell

Sept. 2 (BusinessDesk) - New Zealand commodity prices fell for a sixth straight month in August, taking the index to a 17-month low, led by declining dairy prices, in part due to an oversupply in China.

The ANZ Commodity Price Index slid 3.3 percent last month, and is now 12 percent below February's record high. Whole milk powder dropped 15 percent in the month, paced by a 13 percent decline in skim milk powder and a 10 percent drop in butter prices.

The survey comes ahead of the Reserve Bank's quarterly Monteray Policy Statement next week, where governor Graeme Wheeler is widely expected to keep interest rates on hold, after hiking the official cash rate 100 basis points since March to 3.5 percent. Inflation figures have come in lower than the central bank initially expected on the back of a cooling property market in Auckland and Christchurch, lower growth forecasts and a drop in commodity prices.

Prices for dairy products, New Zealand's largest export, have tumbled some 40 percent at the GlobalDairyTrade auction since the start of the year, causing Fonterra Cooperative Group to slash its forecast farmgate milk payout for 2015 to $6 a kilogram of milk solids, from an inital $7/kgMS, as a build-up of inventory in China dents demand and weighs on dairy prices. Last week New Zealand posted its first monthly trade deficit for the month of July, as the price of logs, the third largest export, dropped some 16 percent in the year.

Among other export commodities, apples fell 4 percent, kiwifruit slipped 2 percent and sheepmeat declined 1 percent, according to the ANZ index.

Meanwhile, beef increased 13 percent, to a new record high. Aluminium prices advanced 4 percent to an 18-month high and wool prices rose 2 percent. The meat sub-group posted its eight consecutive monthly increase, ANZ said.

Prices for seafood, wood pulp, sawn timber, logs and venision were all unchanged in the month.

The ANZ NZD Commodity Price Index, which shows the price movements in New Zealand dollars, slipped 0.4 percent in August, reflecting the month's 0.9 percent decline in the trade weighted index, which is a measure of the dollar against a basket of New Zealand's major trading partners' currencies.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Half Full: Dairy Payouts Steady, Cash Will Be Tight

Industry body DairyNZ is advising farmers to focus on strong cashflow management as they look ahead to the 2015-16 season following Fonterra's half-year results announcement today. More>>

ALSO:

First Union: Cotton On Plans To Use “Tea Break” Law

“The Prime Minister reassured New Zealanders that ‘post the passing of this law, will you all of a sudden find thousands of workers who are denied having a tea break? The answer is absolutely not’... Cotton On is proposing to remove tea and meal breaks for workers in its safety sensitive distribution centre. How long before other major chains try and follow suit?” More>>

ALSO:

Scoop Business: NZ-Korea FTA Signed Amid Spying, Lost Sovereignty Claims

A long-awaited free trade agreement between New Zealand and South Korea has been signed in Seoul by Prime Minister John Key and the Korean president, Park Geun-hye. More>>

ALSO:

PM Visit: NZ And Viet Nam Agree Ambitious Trade Target

New Zealand and Viet Nam have agreed an ambitious target of doubling two-way goods and service trade to around $2.2 billion by 2020, Prime Minister John Key has announced. More>>

ALSO:

Scoop Business: NZ Economy Grows 0.8% In Fourth Quarter

The New Zealand economy expanded in the fourth quarter as tourists drove growth in retailing and accommodation, and property sales increased demand for real estate services. More>>

ALSO:

Scoop Business: RBNZ’s Wheeler Keeps OCR On Hold, No Rate Hikes Ahead

The Reserve Bank has removed the prospect of future interest rate hikes from its forecast horizon as a strong kiwi dollar and cheap oil hold down inflation, and the central bank ponders whether to lower its assessment of where “neutral” interest rates should be. The kiwi dollar gained. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news