New Zealand commodity prices edged higher in March as wool prices bounced from a slump and red meat continued to attract buyers.
The ANZ Commodity Price Index rose 0.4 per cent in March to 283.5 and was up 3.4 per cent in local dollar terms to 209.4 in a month when the kiwi depreciated against its major trading partners.
Wool prices were the biggest gainer in the month, up 8.6 per cent, which ANZ Bank New Zealand agri economist Con Williams said was due to bargain hunters chasing cheap product and as supply was held back with auction prices below the cost of production. Lamb prices rose 5.8 per cent and beef prices increased 1.9 per cent, although skin prices fell 1.8 per cent.
Aluminium prices also gained in the month, up 2.7 per cent, bolstered by a reduction in inefficient Chinese capacity and growing optimism about global demand, while forestry prices increased 1.2 per cent as Chinese demand bolstered log and wood pulp export prices.
Dairy prices fell 1.8 per cent in the month, but were still nearly 48 per cent higher than a year earlier, as whole and skim milk powder prices fell on the increased New Zealand supply. However, value-add product such as butter and casein saw prices rose 9.2 per cent and 12 per cent respectively as Asian foodservice sales remain strong and lower Australian production stifles supply.
