Commodity prices fall for first time in 10 months

The end of the golden weather for NZ commodity exports? Photo / Kenny Rodger

New Zealand commodity prices slipped for the first time since August last year, ending the run of golden weather for locally produced raw material, other than wool, which remains on a tear.

The ANZ Commodity Price Index slipped 1.2 per cent to 308.5 last month from a record high in the measure's first decline for 10 months.

Kiwifruit prices dropped 9 per cent as the Northern Hemisphere's fruit season kicks into life, while beef prices dropped 8 per cent owing to an oversupply of imports by the US.

Still, "the index remains at an elevated level, namely the third highest reading since the series began," economist Steve Edwards said in his report.

Record high prices for locally-produced raw materials have helped exporters exposed to the primary sector repay debt, and their future spending is expected to help kick the economy back into life.

The index fell 3.3 per cent to 208 on a New Zealand dollar basis as the currency extended gains this year, touching a fresh post-float high above 83 US cents last week.

The price of whole milk powder and skins each dropped 3 per cent last month, while aluminium and apple prices declined 1 per cent and log prices edged down.

Wool prices hit a new record high, up 5 per cent in June, while skim milk powder prices also rose 5 per cent.

Venison prices increased 3 per cent, and lamb, sawn timber and seafood prices each rose as much as 1 per cent in the month.