July 4 – New Zealand commodity prices slipped for the first time since August last year, ending the run of golden weather for locally produced raw material, other than wool, which remains on a tear.
The ANZ Commodity Price Index slipped 1.2% to 308.5 last month from a record high in the measure’s first decline for 10 months.
Kiwifruit prices dropped 9% as the Northern Hemisphere’s fruit season kicks into life, while beef prices dropped 8% owing to an oversupply of imports by the U.S.
Still, “the index remains at an elevated level, namely the third highest reading since the series began,” economist Steve Edwards said in his report.
Record high prices for locally-produced raw materials have helped exporters exposed to the primary sector repay debt, and their future spending is expected to help kick the economy back into life.
The index fell 3.3% to 208 on a New Zealand dollar basis as the currency extended gains this year, touching a fresh post-float high above 83 U.S. cents last week.
The price of whole milk powder and skins each dropped 3% last month, while aluminium and apple prices declined 1% and log prices edged down.
Wool prices hit a new record high, up 5% in June, while skim milk powder prices also rose 5%. Venison prices increased 3%, and lamb, sawn timber and seafood prices each rose as much as 1% in the month.
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