KEY POINTS:
International dairy prices dropped last month but several of New Zealand's other key commodities took up the slack, pushing a monthly commodity price gauge to a new record level.
The ANZ Commodity Price Index rose 1 per cent to 219.8, after dipping in April from a previous high.
Apples and beef prices lead the way, with apples up 23 per cent as new season apples reached Europe and beef up 7.9 per cent as the US barbecue season got underway.
When converted to NZ-dollar terms, an easing in the New Zealand dollar against all but one of its main trading partners pushed the ANZ NZ Dollar Commodity Price Index up 2.5 per cent .
ANZ economist Steve Edwards said it was good to see the surge in commodity prices had been broad based, especially given the economic slowdown in several offshore markets.
Dairy prices had come off about 10 per cent since a massive surge when they more than doubled, "but it's good to see some of the other commodities coming to the forefront now and a bit of the love's been spread around other parts of the economy".
Other price rises included venison up 4 per cent, seafood up 1.3 per cent and lamb up 1 per cent.
Kiwifruit prices lifted 4.7 per cent, and wool prices firmed 2.4 per cent in the month.
Offsetting those gains was a one per cent drop in dairy prices, and drops in sawn timber (4.7 per cent), aluminium (1.9 per cent), pelts (2.7 per cent) and logs (0.4 per cent).
Over the past year, the ANZ's world price index has risen 18.7 per cent and the New Zealand dollar index is up 13.2 per cent.
Meanwhile, in a ASB commodity commentary, Professor William C Bailey, chair of the agriculture department at Western Illinois University, said monthly dairy prices had declined for the past six months on a trade-weighted basis.
"Nevertheless, average May prices for 2008 were about 20 per cent above May 2007 prices. The decline in prices, when combined with the weaker US dollar, has made the US a less attractive export destination."
- NZPA
