New Zealand commodity prices lifted in May, led by horticulture.
The ANZ Commodity Price Index gained 1 per cent in May to 231.1 and was down 12 per cent on an annual basis. A lower New Zealand dollar, except if exporting to Australia, saw the New Zealand dollar index advance 2.5 per cent in May, although it was down 3.5 per cent on an annual basis.commodity prices lift in May as horticulture shines
"In recent months, prices look to have found a floor that they are now bouncing along," ANZ Bank New Zealand agri economist Con Williams said in his report.
Horticulture prices led the gains, lifting 6.2 per cent in the month with the start of new season crop sales.
"It looks like a good start to the new season for pipfruit and kiwifruit growers, with prices for both lifting in May," Williams said. "Solid prices combined with record-sized crops will see these sectors climb further up the export league tables this year.
Back-to-back solid returns are creating momentum for new investment and expansion from orchards through to pack houses and cool stores."
Across other commodities, seafood prices rose 1.1 per cent, forestry increased 0.9 per cent, and meat advanced 1.5 per cent. In aggregate, dairy prices were stable and aluminium prices slipped a touch, down 1 per cent, Williams said.
Beef led the meat price gains, up 2.8 per cent, while wool improved 1.5 per cent. The other categories of lamb, venison and skins were largely unchanged.
Within dairy, skim milk powder slid 1.8 per cent due to large European stocks, while butter sank 1.4 per cent. The other categories of whole milk powder, cheese and casein were largely unchanged.
In the forestry category, log prices advanced 1.2 per cent while wood pulp increased 1.4 per cent. In the seafood category there were lifts for snapper and squid prices