Commodity prices rose 7.9% to near record highs in February as most commodity prices rose in US dollar terms and the New Zealand dollar softened over the month, the ANZ Commodity Price Index found.

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The ANZ Commodity Price Index lifted a further 3.8 percent in February 2010. The current index reading of 220.3 is the second highest for the series and not far below the all-time high of 223.5 recorded in July 2008.

In world price terms, six commodities recorded a strengthening in prices, while three recorded price declines. The export price of lamb sold in the UK market hit an all-time high in February. The price of skins and beef also recorded strong rises, with both series lifting to their highest level since September 2008. Wool prices posted a strong gain, lifting to the joint highest level since October 2008.

The price of logs rose to a 14-month high and seafood prices rose to a 9-month high. Of the three commodity prices to record a decrease in February, aluminium prices posted the largest fall, down 7.8 percent. Not far behind, dairy prices eased 7.6 percent. Venison was the other commodity to record a price decline, down 0.7 percent in February.

The value of the New Zealand dollar eased relative to most of our major partners in February. The exception was versus the Euro, which was unchanged. The drop in the value of the kiwi dollar exacerbate the increase in the NZ dollar valued commodity price index, which rose 7.9 percent. The level of the NZ dollar index was 165.8 in February, which like the world priced series, is the second highest level recorded, narrowly behind the all-time high of 166.4 measured in August 2008.