The world surge in commodities was confirmed yesterday with the release of the ANZ Commodity Price Index, which increased 3.8 per cent in January, compared with the previous month, with 13 products up, one down and three unchanged.
The price of skim milk powder increased 14 per cent in January, wool prices rose 11 per cent, and whole milk powder and beef both rose 7 per cent.
The kiwi strengthened against all main trading partners during January, dampening the rise in export prices in local currency terms, although the New Zealand dollar index rose 2.3 per cent in January to another record high, ANZ said.
The world price index increased for the fifth consecutive month, hitting 313.3 in January - 27.2 per cent up on last year and 73.9 per cent higher than in January 2009.
Rising income in Asia was causing increased demand for protein, and a shift from steaks to burger patties was benefiting beef exporters to the US.
Fonterra's next auction will be held overnight on February 16 New Zealand time.
