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NZ commodity prices hit new high in November, but strong Kiwi$ trims gains

NZ commodity prices hit new high in November, but strong Kiwi$ trims gains

New Zealand commodity prices hit new highs in November, although a stronger Kiwi dollar over the month meant gains were muted, according to the latest ANZ Commodity Price Index.

Here is the release from ANZ:

A new peak in commodity prices. The ANZ Commodity Price Index lifted a further 4.5 percent in November, taking the series to a new all-time high. Prices were higher for ten of the commodities we measure, while two commodities recorded price declines and three were unchanged.

Pelts and skin prices lift off. Last month it was the price of wool that surged. This month it is the price of pelts, which jumped 32 percent on the previous month. After being in the doldrums for all of 2009, the series has now leapt ten-fold to sit at a 13-year high. Additional strong rises were noted in the price of logs and lamb, both up 6 percent. Wool prices lifted a further 3 percent, and the price of beef, wood pulp and dairy products all lifted 1 percent. Seafood prices increased 0.4 percent.

Two laggards. Aluminium and skim milk powder prices were the two commodities to record a drop in price over the month, falling 1 and 3 percent, respectively. The prices of kiwifruit, casein and venison were unchanged from the previous month.

Stronger kiwi dollar caps NZD price gains. The New Zealand dollar strengthened against all the currencies of our major trading partners. Consequently, this constrained the lift in the NZD Commodity Price Index to 1.4 percent, leaving the series marginally below its peak recorded in May 2010.

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Dont worry people the calvalry is arriving and as usual they're wearing redbands!

So Bernake is wearing redbands now, wow that funny money gets around. What happens if he ever decides to stop?

Bernanke? I've got a spare pair of redbands, wouldnt envision him wearing them though. 


Bill Bonner agrees with me,


** "Should I buy farmland," asks a Dear Reader.

Answer: yes and no.

There. Always trying to be helpful. Farmland has been a great investment for many years. But yields - from renting out farmland - are near record lows. This suggests that capital gains will be low over the years ahead. There's a time for every purpose under heaven; this is probably not the best time to buy farmland

Andrewj: If you are a bone fide farmer with cash in hand, I would say the ideal time to buy a farm is on the way, if you are in the market.  As the song says a time for every purpose. :-)

Personally I have always believed in farming for cashflow, not capital gains, but then again if you are in for the long haul, cashflow will always be more important than capital gain.

SS: Some more positive news for us today - average milk price was up again.

CO, just crutched a few lambs, oh my back, my time for everything may have been yesterday.

Sounds like it's your time for 'a cold one' AJ - you deserve it. ;-)

but not at 9.30 in the morning have to settle for a coffee. My father just got a new girlfriend at 81 and he assures me all the male bits are working fine and he thinks will for a few years yet. My wife is horrified  she,s never going to get a break.