Global shipping prices are now trending down with the volatile Baltic Dry Index falling nearly 50% in August.
ANZ agri economist Susan Kilsby says it’s “now clear that shipping prices are easing, but they remain way above pre-pandemic levels”.
“Global shipping demand appears to be easing, which will take some of the pressure off the industry, but it also indicates global demand for goods is falling.”
Dairy prices fell 8.2% month-on-month in August, but there are “encouraging signs” that prices may lift again soon.
“Milk production volumes remain low in most major dairy-exporting countries, which is helping to offset the weak demand for dairy products,” Kilsby says.
The meat and fibre index lifted 0.6% in August and prices are now back just 2.2% year-on-year. Beef prices lifted, offsetting the small decline in lamb prices.
Lamb is highly exposed to markets in China and Europe, and in both of these regions economic growth is under pressure. Beef is also highly exposed to China.
The forestry index lifted 1% in August, reversing the downward trend seen over the last three months.
The ANZ World Commodity Price Index fell 3.3% in August with the pace of decline accelerating in the past three months.
In NZ dollar terms the decline was even greater, with the index falling 4.4% as our currency appreciated 1.1% according to the Trade Weighted Index.
