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 per cent last month, following a 1.6 per cent decline in May. Whole milk powder declined 9 per cent and skim milk powder fell 8 per cent.
The Thomson Reuters/Jefferies CRB Commodity Index, the world's leading benchmark of commodity prices, fell 1.5 per cent 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 per cent, butter declined 4 per cent and cheese was down 2 per cent. Apples, aluminium and lamb fell 1 per cent and pelt prices had a "minor dip".
Wool was the biggest gainer, rising 5 per cent, kiwifruit gained 3 per cent and casein and seafood climbed 2 per cent. Logs rose about 0.3 per cent. Wood pulp, venison and sawn timber were unchanged.
The ANZ NZD Commodity Price Index extended its gains, rising 0.9 per cent in June to a two-year high. It is now 6 per cent 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 per cent of New Zealand's $46 billion annual export earnings. Results of the latest GDT dairy product auction are due early tomorrow.