As New Zealand’s export season gains momentum, there are some encouraging signs for the farming industries on the price front. For good measure, the NZ dollar has eased in value against the US dollar.
The ANZ Bank’s world commodity price index increased 1.3% m/m in February, a welcome lift, the bank says, after 10 consecutive monthly falls. Stronger returns for meat and forestry products were the main drivers. In local currency terms the index gained 2.0%.
Dairy prices lifted 0.2% month-on-month in February, with the dairy auctions delivering mixed results. ANZ economist Susan Kilsby says there is a strong expectation that improved economic activity in China will drive increased demand for dairy products, but this is yet to really materialise. Continue reading “Still mixed signals on the export price front, with a worrying cloud on the edge of the horizon”