2 Jul 2014

Commodity prices hit 15-month low

3:58 pm on 2 July 2014

Commodity prices have edged down for the fourth successive month, to its lowest level in 15 months.

The ANZ Bank's monthly Commodity Price Index declined 0.9 percent in June, compared with the previous month. It is now 6.7 percent below the record high in February.

Among the falls, apples declined 6 percent, log prices 5 percent, whole and skim milk powder 3 percent, butter and pelts 2 percent, and casein 0.5 percent.

That offset gains in other commodities: alumimium rose 5 percent, kiwifruit and wool 3 percent, beef 2 percent, and cheese and lamb 0.5 percent.

Seafood, wood pulp and venison remained unchanged.

For the sectors, dairy prices are at 16-month lows and forestry at 14-month lows.

However, horticulture and aluminium prices have increased to 12 and 14-month highs respectively, while meat rose to a 14-1/2 year high and seafood remains at an all-time high.

When converted back into New Zealand dollars, returns to commodity producers fell 1.1 percent due to a slightly higher exchange rate.

The index is 0.3 percent lower than a year ago.