NZ commodity prices hit new high in November, but strong Kiwi$ trims gains

New Zealand commodity prices hit new highs in November, although a stronger Kiwi dollar over the month meant gains were muted, according to the latest ANZ Commodity Price Index.

Here is the release from ANZ:

A new peak in commodity prices. The ANZ Commodity Price Index lifted a further 4.5 percent in November, taking the series to a new all-time high. Prices were higher for ten of the commodities we measure, while two commodities recorded price declines and three were unchanged.

Pelts and skin prices lift off. Last month it was the price of wool that surged. This month it is the price of pelts, which jumped 32 percent on the previous month. After being in the doldrums for all of 2009, the series has now leapt ten-fold to sit at a 13-year high. Additional strong rises were noted in the price of logs and lamb, both up 6 percent. Wool prices lifted a further 3 percent, and the price of beef, wood pulp and dairy products all lifted 1 percent. Seafood prices increased 0.4 percent.

Two laggards. Aluminium and skim milk powder prices were the two commodities to record a drop in price over the month, falling 1 and 3 percent, respectively. The prices of kiwifruit, casein and venison were unchanged from the previous month.

Stronger kiwi dollar caps NZD price gains. The New Zealand dollar strengthened against all the currencies of our major trading partners. Consequently, this constrained the lift in the NZD Commodity Price Index to 1.4 percent, leaving the series marginally below its peak recorded in May 2010.