Commodity prices close to highs despite dairy fall

Export commodity prices surged last month, pushing ANZ's index close to its all-time high in both world and New Zealand dollar terms.

In world price terms the index climbed 3.8 per cent in the month to the second highest reading in its 24-year history.

The effect was compounded by a lower exchange rate so that in New Zealand dollar terms the export commodity index jumped 7.9 per cent, to just a whisker below its all-time high in August 2008.

The rise was despite a 7.6 per cent drop in dairy prices, which make up nearly 40 per cent of the index. Dairy prices are off 9.5 per cent from their peak in December, but are still 63 per cent above their level a year ago.

The meat, wool and skins segment of the index by contrast is at a record high.

Lamb prices in the British market also hit an all-time high last month, ANZ economist Steve Edwards said, while beef, wool and skins prices also posted strong gains, reaching their highest levels since late 2008.

The price of logs rose to a 14-month high and seafood prices to a nine-month high.

Aluminum prices fell 7.8 per cent last month, though they are still 55 per cent higher than a year ago.