Commodities' golden run ends

Kiwifruit prices fell 9 per cent and apples 1 per cent. Photo / Thinkstock

World prices for a basket of New Zealand's export commodities eased last month, ending a string of rises nine months long.

The 1.2 per cent decline in ANZ's commodity price index still left it at its third highest level ever and 21 per cent higher than a year ago.

But the decline was amplified by a stronger exchange rate so that in New Zealand dollar terms the index was 3.3 per cent down on May and just 5 per cent higher than in June last year.

Kiwifruit prices fell 9 per cent and apples 1 per cent.

"The decrease in the fruit prices reflects the traditional seasonal decline, as the Northern Hemisphere export season progresses and the price premium of the new season's fruit is reduced," ANZ economist Steve Edwards said.

Beef prices fell 8 per cent, reflecting an oversupply of imported product into the United States, he said.

Dairy prices were mixed, with whole milk powder down 3 per cent but skim milk powder up 5 per cent. Wool prices rose 5 per cent to a new high.

Of the 17 commodities in the index, seven fell, six rose and four were unchanged.