:. Food Industry News


NZ Commodity Prices Rebound to Record High in May

Source: Reuters
05/06/2008

Wellington, June 4 - New Zealand commodity prices rose to record highs in May as gains in apple and beef offset weaker dairy prices, a survey from the ANZ Bank showed on Wednesday.

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ANZ's commodity price index rose 1 percent, following a 0.3 percent drop in April, to be 18.7 percent higher than a year ago.

"Overall, international commodity prices continue to lift in our favour, representing a key source of support to the economy," the bank said in a report.

"This is despite a recent retracement in international dairy prices and an economic slowdown occurring in several of our offshore markets."

Rising commodity prices, particularly for dairy products, have been a key driver of economic growth but also an inflation concern for the Reserve Bank of New Zealand.

Dairy prices fell for the second straight month, easing 1 percent last month although they were still 16 percent higher than a year ago. Last week, dairy export giant Fonterra Co-operative Group Ltd raised its forecast payout to farmers by 3.9 percent for the current season.

Apple prices surged 23 percent as the new season crop hit the European market, while beef rose 8 percent reflecting the start of the barbeque season the United States, ANZ said.

In New Zealand dollar-adjusted terms, the index rose 2.5 percent, as the currency fell against most of its major trading partners.



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