New Zealand commodity prices declined for the ninth consecutive month in November, to the lowest level since February last year, as milk powder prices fell to five-year lows.
The ANZ Commodity Price Index dropped 1.6 per cent to 286.3 last month, 12.4 per cent lower than its reading the samemonth a year ago and the lowest for a November month since 2012. Skim milk powder fell 7 per cent, while whole milk powder dropped 6 per cent, with both series at their lowest since 2009.
Today's data comes ahead of the GlobalDairyTrade auction overnight. Since the start of the year dairy prices have halved at the GDT auctions as over-supply and weaker demand in China, the biggest destination for New Zealand's largest export, weighs on prices.
"Dairy has been a major force driving down the ANZ commodity price index," said ANZ Bank economist Steve Edwards. "The dairy component (has been) falling for nine successive months to be 37 per cent below the same level a year earlier, and 45 per cent below April 2013 peaks."
Other commodity prices which fell include cheese, butter and casein, which all eased 2 per cent to two-year lows. Wool prices fell 4 per cent, pelt prices declined 3 per cent and beef prices slipped 2 per cent. Log prices declined 1 per cent, while timber prices eased 0.25 per cent.
Aluminium was the biggest gainer in the month, rising 5 per cent while kiwifruit advanced 2 per cent to record highs, ANZ said. Sheepmeat increased 0.5 per cent, while seafood, wood pulp, apples and venison were unchanged in the month.
See the latest terms of trade data published yesterday by Statistic NZ:
The ANZ NZD Commodity Price Index, which shows the price movements in New Zealand dollars, fell 1.6 per cent in November, to be 15 per cent below the March 2011 peak.
