Prices for New Zealand commodity exports hit record highs in both world price and New Zealand dollar terms, the ANZ Commodity Price Index shows.
However, the flow-on from high prices to the general economy was currently being curtailed by adverse weather conditions impacting volumes and a rural property market that remains under pressure, ANZ said.
"But sustained lifts in commodity prices - if sustained over time - will present a tremendous windfall for the economy," ANZ said.
Here is the release from ANZ:
New record high. The ANZ Commodity Price Index rose 2 percent in the final month of 2010. This is the fourth consecutive monthly increase and takes the index to a new record high.
Meaty chunks. Ten commodities recorded a higher price in the month of December, while two recorded a weaker price. Meat prices recorded three of the four largest increases in December. Beef prices posted the strongest increase up 10 percent from a month earlier, with sheepmeat prices up 1.9 percent and venison prices up 1.3 percent. Skin prices had the second largest increase, lifting 5.2 percent from a month earlier. Aluminium, seafood and wood pulp prices lifted by just over 1 percent. Dairy and sawn timber prices rose by about half a percent.
Bottom of the wood and wool piles. The two commodities to record a weakening in price in December were wool (-2.1 percent) and logs (-1.4 percent). The price of apples, kiwifruit, cheese, butter and casein were unchanged on the previous month.
NZ dollar index also at an all-time high. When converted into New Zealand dollars, the ANZ NZD Commodity Price index lifted by 4½ percent, to a new record high. This reflects a weakening of the NZD/USD exchange rate over the month of December.
Strong commodity prices are a key crux of support to the economy. At present the flow-on to the general economy is being curtailed by adverse weather conditions impacting volumes and a rural property market that remains under pressure. But sustained lifts in commodity prices - if sustained over time - will present a tremendous windfall for the economy.