5 Sep 2017

Commodities slip in August

5:33 pm on 5 September 2017

Commodity prices have nudged lower, because of weaker meat prices and dairy flattening off.

Milk at Pak n Save Kilbirne.

Photo: RNZ / Alexander Robertson

ANZ Bank's commodity price index fell 0.8 percent in August, matching a fall in July.

Dairy prices were fractionally lower, within that skim-milk powder slipped 5.2 percent because of larger stockpiles in Europe.

ANZ rural economist Con Williams said it was a mixed bag.

"It was another mixed picture in August, with forestry prices increasing, meat prices falling, and dairy prices going sideways," he said.

Mr Williams said a lower currency helped last month.

"The dip in the New Zealand dollar (NZD) against most major peers during August helped buffer local returns. Both the world prices and NZD indexes are 16 percent higher versus 12 months earlier," he said.

In other commodities, meat fell 3.2 percent, with beef falling, while wool prices rose from recent lows.

And horticulture prices fell, while aluminium prices made solid gains.

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