Apples lead commodity price rise

A seasonal rise in apple prices helped push up commodity prices last month, according to the latest ANZ World Commodity Price Index.

The index recorded a 0.3 per cent increase in May compared to the previous month, and was 8.7 per cent higher than in May last year.

Three commodities recorded price increases in May: beef, skins and apples. Seven recorded price decreases: wool, lamb, logs, sawn timber, wood pulp, seafood and aluminium. There was no change in three commodities: dairy, venison and kiwifruit.

Apples recorded the largest monthly increase, up 19.5 per cent. ANZ said this reflected the start of New Zealand apples selling in the European season. "Prices are traditionally higher at the start of the season," said the bank.

But on an annual basis apple prices were 3.7 per cent lower than May last year, reflecting lower prices for Braeburn and Gala varieties.

The beef index rose 4.2 per cent compared to April, as the United States moved towards the summer barbecue season.

Lamb prices dipped 0.6 per cent on the month earlier. ANZ said lamb prices tended to fall around this time, following a peak over Easter.

The New Zealand dollar was largely unchanged against the US dollar in May, but was slightly stronger on a commodity trade-weighted basis. This was enough to offset the small increase in world prices and leave the New Zealand Dollar Commodity Price Index largely unchanged in May, down just 0.1 per cent.

- NZPA