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.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Oceans: NOAA Declares Third Ever Global Coral Bleaching Event

As record ocean temperatures cause widespread coral bleaching across Hawaii, NOAA scientists confirm the same stressful conditions are expanding to the Caribbean and may last into the new year, prompting the declaration of the third global coral bleaching event ever on record. More>>

Scoop Business: A Decade Of Government Pre-Seed Investment

More publicly-funded science is being commercialised after a decade of government ‘pre-see’d investment, according to an independent review. More>>


Solid Energy: Plan To Shut Unprofitable Huntly East Mine

Solid Energy, the state-owned coal miner in voluntary administration, plans to shut down its unprofitable Huntly East mine and lay off 65 staff after deciding the site stands "no chance whatsoever" of finding a buyer. More>>


E Tū: Merger Creates NZ's Biggest Private Sector Union

E tū has been created by the merger of the Engineering, Printing and Manufacturing Union and Service and Food Workers’ Union. It represents more than 50,000 working New Zealanders in industries as diverse as aviation, construction, journalism, food manufacturing, mining and cleaning. More>>


Internet: NZ Govt Lifts Target Speeds For Rural Broadband

The government has lifted its expectations on faster broadband speeds for rural New Zealand as it targets increased spending on research and development in the country's information and communications technology sector, which it sees as a key driver for export growth. More>>


Banks: Westpac Keeps Core Government Transactions Contract

The local arm of Westpac Banking Corp has kept its contract with the New Zealand government to provide core transactions, but will have to share peripheral services with its rivals. More>>


Science Investment Plan: Universities Welcome Statement

Universities New Zealand has welcomed the National Statement of Science Investment released by the Government today... this is a critical document as it sets out the Government’s ten-year strategic direction that will guide future investment in New Zealand’s science system. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news