July 2, 2010
Falling NZ dairy prices pull commodity index down
New Zealand commodity prices fell for the first time in 15 months as the Australian and New Zealand Banking Group (ANZ) Commodity Price Index eased from a record high in May, reflecting softer prices for dairy products.
The index fell 1.2% to 280.9 last month, following a revised 2.8% gain in May. Dairy prices sank 3.1%, with dairy index skim milk prices tumbling 8.1% in a month when Fonterra Cooperative Group's online trading platform, globalDairyTrade, reported a decline in the average price for whole milk powder and increased volatility.
In New Zealand dollar terms, the index slipped 0.2% to 217.2 as the dollar pared its gains last month.
ANZ economist Steve Edwards said the index was still at the "second highest level measured behind last month's peak" and was up a solid 53% from the same month a year ago.
Eight of 13 commodities fell, including beef, which fell a substantial 5.2%.
Among the gainers, skin prices rose 6.8%, wood pulp prices increased 4.5% and seafood prices advanced 3.2%. Wool edged up 1.5% and venison was up 1.3%.
