Wednesday, 9th June, 2021
Commodity prices have surged over the first half of 2021. As of this week, the ASB Commodity Index (a weighted index of major commodities based on their share of NZ exports) has reached an eighteen-month high in NZD terms. Price gains have been sustained for quite some time. In fact, our NZD index reached its highest monthly average ever during March and May.
Gains are proving impressively broad-based. While COVID-19 impacted different commodities unevenly, the bulk of NZ’s major exported commodities are being buoyed by the rising tide. Dairy prices have surged to eight-year highs, forestry prices are at a record high and fruit prices hit record levels at the end of last season. Meat prices aren’t quite as frothy given their pandemic tumble, but our meat index has risen 15% since the beginning of March.