NZ commodity prices fall 3.7 percent in June, led by milk powder, beef; wool rises

New Zealand commodity prices fell for a second month in June, led by dairy products and beef, though the slide in the kiwi meant prices actually rose in the local currency.

The ANZ Commodity Price Index fell 3.7 percent last month, following a 1.6 percent decline in May. Whole milk powder declined 9 percent and skim milk powder fell 8 percent.

The Thomson Reuters/Jefferies CRB Commodity Index, the world’s leading benchmark of commodity prices, fell 1.5 percent last month and is now sitting near its lowest levels since June last year. Weaker manufacturing activity in China has weighed on prices of raw materials and prices of dairy products have fallen in three of the past four GlobalDairyTrade auctions.

Within the ANZ index, nine commodities fell in June, five rose and three were unchanged. Beef fell 7 percent, butter declined 4 percent and cheese was down 2 percent. Apples, aluminium and lamb fell 1 percent and pelt prices had a “minor dip”.

Wool was the biggest gainer, rising 5 percent, kiwifruit gained 3 percent and casein and seafood climbed 2 percent. Logs rose about 0.3 percent. Wood pulp, venison and sawn timber were unchanged.

The ANZ NZD Commodity Price Index extended its gains, rising 0.9 percent in June to a two-year high. It is now 6 percent below its March 2011 peak. The kiwi dollar was last at 78.08 US cents, having declined from as much as 86.77 cents in April.

ANZ’s index includes commodities which make up about 60 percent of New Zealand’s $46 billion annual export earnings. Results of the latest GDT dairy product auction are due early tomorrow.

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