Commodity prices hold steady in February

Photo / NZ Herald
Photo / NZ Herald

The ANZ commodity price index of New Zealand exports was unchanged during February, with declines in some areas balanced by gains in others.

Dairy prices in aggregate fell 1 per cent, seafood dropped 4 per cent and the price of skins recorded the largest fall of 10 per cent. Venison prices also dropped 3 per cent. This means seafood prices are now at a 13-month low, wool's back to an 11-month low and skins and casein prices both dropped to 10-month lows.

The overall index was held in balance by logs lifting 4 per cent, as aluminium, beef and kiwifruit prices all gained 3 per cent and lamb lifted 1 per cent. Beef had its third successive monthly price increase, and is now at a record new high.

A strengthening New Zealand dollar against all the country's trading partners saw a 1985 post-float high against the pound and the euro. This translates into a weakening of the ANZ NZ Dollar Commodity Price Index of 4 per cent in February, dropping to a two-year low for this series.

ANZ economist Steve Edwards said while the NZ dollar-priced series has now fallen 17 per cent from its March 2011 peak, it remains 13 per cent above its post-2000 average.

Edwards made special note of a 24 per cent easing in wood pulp prices over the past six months, following two years of increasing prices for the paper-making raw material.

In the 12 months to January 2012, wood pulp exports totalled $660 million. This represents 15 per cent of all New Zealand's forestry-related exports or 1.4 per cent of the country's total merchandise exports.

- BusinessDesk

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