NZ export prices already falling from terms of trade high
Sept. 1 (BusinessDesk) – New Zealand commodity prices fell for a third month in August with the price of milk powder falling from a peak in March, according to the ANZ Commodity Price Index.
The index fell 1.2% to 304.3 last month and has slipped 2.5% in the past three months. Prices in nine commodities fell, while four had modest gains and wood pulp and casein prices were unchanged.
Surging dairy prices have underpinned New Zealand’s economic recovery, with government data today showing they helped push the country’s terms of trade to a 37-year high in the June quarter.
The price of milk powder, logs and aluminium each fell 6%, and ANZ economist Steve Edwards said milk powder was down 16% from a peak in March.
The price for wool, butter and skins each dropped 4% in August, while lamb was down 2% and cheese and sawn timber each down 1%.
Fruit, beef, seafood and venison all gained modestly, Edwards said. ANZ said the falling world prices were completely offset in New Zealand dollar terms as the kiwi depreciated 4% during the month, and was down 10% against the greenback at one point.
The NZ Dollar index was unchanged at 200.3.