New Zealand commodity prices lifted last month, led by the
price of pelts.
Although the ANZ commodity price index increased 1% in
November, the rise followed an equally sharp drop the
previous month, so the series returned to where it was two
months previously, which was a 23-month low, economist Steve
Ten commodity prices rose in November, including pelts which,
at 6%, recorded the strongest percentage increase, four were
weaker and three were unchanged.
Sawn timber prices increased to a two and-a-half year high
and whole milk powder posted its fifth successive monthly
rise to reach an eight-month high.
Cheese and beef prices also touched an eight-month high and
seafood prices lifted to a six-month high.
At the other extreme, lamb prices eased to a 31-month low and
the price of venison eased to a 22-month low.
The increase in New Zealand dollar commodity prices was an
encouraging development and, if sustained, seemed set to
contribute to a rise in the goods terms of trade over 2013,
Mr Edwards said.
The ANZ NZD commodity price index was 5% higher than the
recent trough three months ago, but remained 22% below the
peak recorded in March last year.
Westpac economist Nathan Penny said world commodity prices
rose 1% in November, led by meat and dairy price gains.
World dairy prices had now risen for five consecutive months
as the effects of drought conditions lingered in the northern
hemisphere, while meat prices posted their second monthly
Westpac expected an improvement in Asian economic growth and
the lingering effects of the northern drought would support
commodity price increases over the remainder of 2012 and into
Despite the overall increase in meat prices, lamb and beef
prices were ''marching to a different beat''.
In annual terms, NZD lamb prices were 30% lower than a year
ago while beef prices were only marginally down from record