Weaker NZ dollar sustains exports index

World prices for a basket of New Zealand's main export commodities eased last month but the weaker dollar more than compensated for the decline.

ANZ's commodity price index fell 0.9 per cent in June after three successive monthly rises. Although 3.6 per cent below its peak in May last year the index remains at historically high levels.

In New Zealand dollar terms, commodity prices rose 0.8 per cent to be 12 per cent higher than they were a year ago.

Dairy products, which make up 30 per cent of the basket, were unchanged.

Wood pulp, lamb, venison, logs, beef, sawn timber and seafood all recorded gains but aluminium, apples, skins, kiwifruit and wool prices fell.

In the case of aluminium and apples, the decline only partly reversed large gains in April and May.

Wool prices in New Zealand dollar terms have been steadily improving since hitting a low last December.

But the long-term trend is downward, ANZ said, and the wool clip now accounts for only 15 per cent of New Zealand's gross farm income, compared with 35 per cent 20 years ago.