NZ: Commodity Price Index rose 1.0% m/m in April - ANZ

The ANZ Commodity Price Index rose 1.0% m/m in April, notching up its fourth consecutive lift. Of the 17 commodities seven rose, five were unchanged and four declined, notes Con Williams, Agri Economist at ANZ.

Key Quotes

“The NZD moved higher against major trading partners except the USD and GBP. This helped boost NZD returns 1.2% m/m, lifting annual growth to 5.8%.”

“Dairy prices continued to push higher in April (+2.7% m/m, +7% y/y) due to a range of influences.”

“The meat & fibre complex (-1.9% m/m) was mixed.”

“New-season horticultural product prices were largely unchanged (-0.1% m/m) on last season’s close as produce begins to hit the shelf across the major markets.”

“Forestry prices continued to grind higher (+0.2% m/m), marking 20 months of consecutive gains for the sector. Domestic and export log and lumber prices remain well above last year, with solid demand both domestically and from China. However, upward momentum has flattened out recently.”

“Aluminium prices jumped 8% m/m on trade and geopolitical tensions. China’s clampdown on excess production and capacity restrictions to improve air quality continue to support prices. However, the real boost was provided by US sanctions on Russia, which included limiting trade with one of the world’s largest aluminium producers, Rusal. Prices jumped 28% mid-month, before easing to register an 8% m/m gain as sanctions were softened.”