New Zealand's commodity export prices dropped by 0.1% in July in world price terms, but when returns were converted back into New Zealand dollars, prices fell 3.7% from June as the Kiwi dollar strengthened over July, according to the ANZ Commodity Price Index.
See ANZ's comments below:
The ANZ Commodity price Index slipped by the narrowest of margins in the month of July. The index was 0.1 percent lower in July, but remains relatively elevated being 22 percent higher than when compared to a year earlier. There were eight commodities recording a firming in prices in July and seven commodities recording price falls. Wood pulp and lumber prices were unchanged in the month.
The price of kiwifruit recorded a 7 percent rise in July, followed by a 6 percent rise in wool prices and a 5 percent rise in beef prices. The price of skins lifted 2 percent, while seafood, sheepmeat and venison prices all rose by up to 1 percent.
Log prices recorded the greatest fall, dropping 6 percent from the preceding month. Apple prices dropped 5 percent, the prices of dairy products eased between 1 and 4 percent (with the overall dairy component decreasing 2 percent) and aluminium prices slipped 1 percent.
The strengthening in the NZ dollar has eroded the NZD Commodity Price Index. On a trade-weighted basis the value of the kiwi dollar strengthen by over 3 percent in July. With the international prices of commodities virtually unchanged, the rise in the currency was reflected in an easing in the ANZ NZD Commodity Price Index. The index was 3.7 percent weaker in July.