NZ commodity prices fall in July, high kiwi weighs on NZ dollar index
August 1 (BusinessDesk) – New Zealand commodity prices declined for a second month in July, with weakness in logs and dairy products, while kiwifruit prices rose, according to the ANZ Commodity Price Index.
The index slipped 0.1% to 308.5 in July from June, though it remains 22% higher than in July last year. Prices of seven commodities fell, while eight rose. Wood pulp and lumber prices were unchanged in the month.
The ANZ series adds to evidence that global prices are coming off their peaks. A 2% decline in dairy prices comes after the price of dairy products dropped 5.1% in Fonterra’s latest online auction, based on the GDT-TWI Price Index.
The ANZ NZD Commodity Price Index fell 3.7% last month, reflecting a 3% gain in the trade-weighted index in July. The kiwi dollar rose to above 88 U.S. cents today as the U.S. Congress finally reached accord on raising the debt ceiling. The TWI reached 75.17, the highest since July 2007.
The world price of kiwifruit rose 7% in July, leading the advance. Wool rose 6% and beef climbed 5%. Prices of skins gained 2%, while seafood, sheep meat and venison all gained 1%
Logs recorded the biggest decline in the month, dropping 6% from June. Apples fell 5% and aluminium declined 1%.