NZ commodity prices rise in July, led by wool

NZ commodity prices rise in July, led by wool

Aug 5 (BusinessDesk) - New Zealand commodity prices eked out a small gain last month, snapping two months of declines, led by rising wool prices, according to the ANZ Commodity Price Index.

The index rose 0.6 percent to 318 last month, following a 3.7 percent decline in June, for an annual increase of almost 26 percent. In New Zealand dollar terms, the index rose 0.6 percent to 217.2 for a 27 percent annual gain.

Of the 17 commodities tracked, nine increased, five fell and three were unchanged. Wool prices showed the biggest increase, rising 4 percent in July for a 23 percent annual gain, followed by 3 percent gains in prices of skim milk powder, casein and lamb.

Pelt prices increased 2 percent, while logs, butter, and whole milk powder each rose 1 percent. Lumber prices increased a quarter of a percentage point.

Cheese prices were the biggest decliner in July, falling 3 percent, followed by a 2 percent fall in prices of aluminium and kiwifruit. Beef and seafood prices fell 0.25 percent. The price of apples, wood pulp and venison were unchanged.

Exports of primary goods make up about $30.98 billion of New Zealand’s annual $45.72 billion international sales.

The report comes before Wednesday’s GlobalDairyTrade auction, which is expected to show the impact of Fonterra Cooperative Group’s contaminated whey protein on prices. The dairy exporter has been achieving elevated prices amid limited global supply, and last week hiked its forecast payout to farmers for the 2014 season.

(BusinessDesk)

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