Kiwi dollar drop acts as stabiliser for collapse in world prices
3rd Dec 08, 3:51pm
The prices of New Zealand exports in world price terms fell 7.2% in November, following the trend of global commodity prices on the back of a faltering world economy, the ANZ Commodity Price Index shows. Commodity prices in New Zealand dollar terms fell 1.7% as the falling dollar acted as a stabiliser. November was the fourth consecutive month in which the ANZ world price CPI fell. It has fallen by 21% since July. The index showed dairy prices dropped 12.2% from October in world price terms. Pelt prices recorded the largest drop, down 41% from October. Beef, wool, lumber and aluminium prices all fell between 12% and 13% in November. Beef prices fell to a four-and-a-half year low, wool to a six-and-a-half year low, sawn timber to a seven-and-a-half year low and aluminium to a three year low, ANZ economist Steve Edwards said. Lamb prices rose by 4.3% and Kiwifruit by 0.3%, the only two commodities to record price rises from October.