ANZ Commodity Price Index falls in June from May's record high

ANZ Commodity Price Index falls in June from May's record high

In its first monthly decline for a year, the ANZ Commodity Price Index fell in June from May's record high as dairy prices weakened.

ANZ said the index slipped 1.2% from May but was still up 53% on June last year.

A softening in dairy prices was the main reason for the fall, with the overall dairy price index down 3.1% in June.

Read ANZ's statement below:

The ANZ Commodity Price Index recorded a drop in June, the first monthly decline in a year. The index eased 1.2 percent from its level in May, but remains at the second highest level measured, behind last month’s peak.

Compared to the same month last year the index remains up a solid 53 percent.

Dairy prices adjust down.

A softening in dairy prices was the main influence on the direction of the index over July. The overall dairy price index retraced 3.1 percent in June, returning the series to levels that prevailed in April after a brief lift in May.

With the dairy index skim milk prices slumped 8.1 percent, while whole milk prices eased 2.7 percent.

Aluminium prices dropped 6.0 percent, with the price of apples and beef also posting falls (-5.8 and -5.2 percent respectively). Log prices slipped 2.3 percent, sawn timber eased 1.7 percent and kiwifruit prices slipped 1.2 percent.

Positive gains noted.

On the positive side of the ledger, skin prices lifted 6.8 percent, wood pulp prices rose 4.5 percent and seafood prices gained 3.2 percent. Smaller rises were noted for wool (up 1.5 percent) and venison (up 1.3 percent).

A muted drop in NZ priced commodity prices.

When converted in to New Zealand dollars, the ANZ NZD Commodity Price index edged down 0.2 percent, reflecting a general weakening in the value of the New Zealand dollar in June.