Commodity prices drop 2.3%

New Zealand commodity prices slipped 2.3% in January, led by falls in wool, skins, cheese and whole milk powder prices.

The ANZ commodity price index dropped to 232.4 in January, from 238 in December.

The fall in world prices was mostly offset by a lower New Zealand dollar, with local prices down just 0.4% in the month, ANZ agri economist Con Williams said.

Global commodity prices started the year "on the back foot'', driven by falls in oil and industrial metals.

China's economic fortunes and supply dynamics remained "front and centre'' for many commodities, Mr Williams said in a report.

While whole milk powder and sheepmeat had continued to experience negative pricing pressure out of China recently, that had not been universal across sectors.

Log and wool exports, which were some of New Zealand's most highly exposed sectors to China, had had fairly stable or even improved in-market pricing recently.

Even within the dairy category, there was volume growth for the likes of whey and cheese.

Other sectors such as beef, kiwifruit, pipfruit and venison, which were less exposed, were continuing to have strong sales growth in China.

Add a Comment