Scoop has an Ethical Paywall
Licence needed for work use Learn More

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

 

Dairy prices underpin commodity prices in October

Rising dairy prices continue to underpin gains in ANZ commodity price index

by Paul McBeth

Nov. 3 (BusinessWire) – Rising dairy prices continue to underpin gains in the ANZ Commodity Price Index, which recorded its seventh straight monthly gain last month.
The index gained 4.6% in October, led by an 8.3% increase in dairy prices, as 11 of the 13 commodities tracked rose. Dairy prices have recovered strongly as buyers restock depleted inventories, as witnessed by the 65% surge in the price of milk powder on Fonterra’s online auction website, globalDairyTrade.

Fonterra will hold its next auction tomorrow.

“You’d expect dairy prices to fall after they risen over 65% since July, but anecdotally, what we’re hearing suggests prices are still pretty firm,” said Philip Borkin, economist at ANZ National Bank.

Commodities have bounced back from their lows in February, with the ANZ index rising 24% over this period, but are still well down from the highs achieved in 2007.

The gains in international prices have somewhat offset a soaring kiwi dollar, which is up more than 45% from its sub-50 U.S. cents low in March. The currency’s continued strength in October largely wiped out the increase, expressed in New Zealand dollars, with kiwi-denominated commodity index easing 0.4% last month.

Sawn timber rose 6.1% on a global price basis, and wood pulp prices advanced 4.2%. Wool prices increased 7.1% and the price of skins gained 3.5%. Beef prices slipped 3.9% and apples declined 1.7% over the period.

(BusinessWire) 16:12:52

Advertisement - scroll to continue reading

© Scoop Media

Advertisement - scroll to continue reading
 
 
 
Business Headlines | Sci-Tech Headlines

 
 
 
 
 
 
 
 
 
 
 
 
 

Join Our Free Newsletter

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.