New Zealand commodity prices fell to the lowest level in more than two years in June, led by dairy products such as milk powder, as Europe's debt crisis weighs on global prices.
The ANZ Commodity Price Index fell 2.4 per cent last month to its lowest level since March 2010, the fifth straight monthly decline. Whole milk powder fell 7 per cent, leading a 4 per cent slide in prices of dairy products.
Fonterra, the world's largest exporter of dairy products, cut its forecast 2012 milk price in May and flagged the prospect of lower payments for 2013 in the face of weaker global commodity prices.
Farmers have been shielded from the full impact of the decline as they are coming off a season of record production, which isn't expected to be repeated next season.
Dairy prices have fallen to their lowest level in 33 months, according to the ANZ index.
Aluminium fell 6 per cent to a 32-month low and wool declined 5 per cent. Seafood and butter fell 4 per cent and kiwifruit dropped 3 per cent. Casein and beef prices fell 2 per cent, while cheese and pelts fell 1 per cent.
Logs, apples and skim milk powder all rose 2 per cent and lumber prices gained 1 per cent. Lamb, wood pulp and venison prices were unchanged in the month.
The NZD Commodity Price Index fell 3.4 per cent in June, reflecting a strengthening kiwi dollar.