The ANZ World Commodity Price Index slipped 1.0% m/m in June, following five consecutive monthly increases as some payback was due, according to analysts at ANZ.
Key Quotes
“Of the 17 commodities in the index, five rose, three were unchanged and nine declined. Prices fell across all broad categories, with the exception of seafood, which was flat. Wool prices continue to recover, up 18% YTD.”
“The NZD had a topsy-turvy month but ended up appreciating against all major trading partners except the USD. This saw the NZD index dip 1.1% m/m to be up 7.4% y/y.”
“Dairy prices slipped 1.0% m/m partially retracing last month’s 1.5% rise to be up 0.8% y/y.”
“The meat & fibre complex (-0.8% m/m) was mixed.”
“Horticultural product prices (-3.5% m/m) were also mixed.”
“Forestry price rises halted in June, posting a small fall month on month following an impressive string of consecutive monthly gains dating back to October 2016.”
“Aluminium prices fell 2.7% m/m, partially retracting some of the previous two month’s increases (on trade and geopolitical tensions).”
“While there may have been a few small positives for New Zealand so far on the back of protectionist trade rhetoric and policy, a more pronounced slowdown in global trade (and therefore growth) risks shifting this dynamic the other way.”
Share
