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      ANZ Commodity Index Increases 0.6% in September Driven by Oil Prices

      New Zealand's export commodity prices experienced a rise in September, with the ANZ World Commodity Price Index increasing by 0.6% from August and up 1.0% year-on-year. This growth was primarily fueled by a significant surge in oil and gas prices linked to the ongoing conflict in the Middle East. The weaker New Zealand dollar further amplified the gains for local exporters, providing a boost to farm incomes and the terms of trade despite rising import and freight costs.

      Dairy prices saw a notable increase of 1.0%, largely driven by a 9.2% monthly jump in skim milk powder prices, which are now up over 40% compared to the previous year. In contrast, butter prices fell by 5.1% due to increased milk production in the Northern Hemisphere. The aluminium market also saw a rise of 1.1%, supported by supply disruptions in the Middle East, contributing to a year-on-year increase of approximately 23%.

      However, the conflict has also led to higher freight costs, complicating the economic landscape for New Zealand. While the NZD Commodity Price Index rose by 2.8% due to the depreciation of the New Zealand dollar, this increase in local currency terms comes at the cost of more expensive imports. ANZ Research indicated that the situation is creating a dual impact on New Zealand's economy, benefiting energy-linked exports while simultaneously raising costs for imported goods. ANZ's next update on commodity prices is scheduled for November 4.

      © 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

      Source: KLEA News

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