Apple exports drive commodities

File photo

Prices for locally-produced raw materials extended their gains to another record last month as New Zealand apples made their way overseas, according to the ANZ Commodity Price Index.

The series rose 1.6 per cent to 342.5 in April, and has climbed by 25 per cent in the past 12 months.

The index fell 3.9 per cent in New Zealand dollar terms to 238.7, still at the second-highest level in its 15-year history.

The kiwi dollar was little changed at 80.73 US cents after the release.

Apple prices led the index higher, up 41 per cent from the end of last year's export season, but are still 7 per cent lower than in the same month in 2010.

"This reflects a lift in prices as the first of the new season export crop reached the northern hemisphere markets," ANZ economist Steve Edwards said in his report.

Surging commodity prices have continued to underpin New Zealand's soft economic recovery, which has been hampered by two major earthquakes in Canterbury and a lack of appetite among consumers to ramp up spending.

The price of skins was the second biggest pick-up in the index, up 19 per cent last month, while casein prices climbed 11 per cent, even as other dairy products declined.

Wool prices rose 8 per cent and lamb gained 4 per cent.

Log prices increased 6 per cent and wood pulp and sawn timber both rose 4 per cent amid strong demand out of Japan in the wake of the tsunami.

Aluminium prices increased 5% and beef prices gained 1 per cent in April.

Milk powder prices dropped between 5 per cent and 6 per cent, depending on the level of milk fat content, while butter prices slipped 1 per cent last month.

That comes ahead of the latest Fonterra Cooperative Group's online auction this week, which has continued to attract strong prices.

Seafood prices fell a quarter of a percentage point in April, while kiwifruit, venison and cheese prices were all unchanged.