4 Oct 2017

Commodities climb in September

5:57 pm on 4 October 2017

Commodity prices nudged slightly higher in September, led by a rise in dairy prices.

Cheese and dairy products in Pak n Save Kilbirnie.

Photo: RNZ / Alexander Robertson

ANZ Bank's Commodity Price Index climbed 0.8 percent last month, following falls in July and August.

Overall, dairy prices rose 0.4 percent, led by cheese and butter, but there were falls for whole milk powder and skim milk powder.

Meat and wool prices rose, along with fruit, seafood, forestry and aluminium prices.

ANZ rural economist Con Williams said it was encouraging to see the across-the-board gains.

"Local (dollar) returns received a 1.7 percent month-on-month boost as the New Zealand dollar fell against most major (international) peers for the second month in a row," he said.

Mr Williams said stronger commodity prices will boost rural incomes next year.

"This will be important with the economy entering a transition phase... strong commodity prices, and the spill-overs, will be important to help the economy avoid a growth pothole," he said.

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