5 Oct 2009

Biggest rise for commodity prices in 22 years

6:53 pm on 5 October 2009

Prices on world markets for New Zealand's commodity exports posted their largest monthly rise in 22 years last month on the back of rising dairy prices.

But industries other than dairying played their part in the rise, with seven out of the 10 commodities tracked by ANZ's monthly price index recording increases.

Overall prices jumped 6.8% in September, with dairy, timber and wool posting the biggest rises.

When converted into New Zealand dollars, returns remained subdued; but they were still were strong enough to lift the index from its lowest point in three years.

The increase in unconverted commodity prices incorporates last month's 25% increase in prices at Fonterra's monthly milk powder auction.

Price rises on international dairy futures markets in recent weeks suggest there will be further gains when the dairy co-op holds its next auction on Wednesday.