The ANZ World Commodity Price Index eased 0.2% in December as stronger prices for dairy, meat and aluminium were not sufficient to offset lower returns from the forestry and horticultural sectors. Sources: New Zealand Herald, Timberbiz
The index still finished the year up 24% year-on-year.
In New Zealand terms, the index gained 3.1% to extend its record high, bolstered by a 2.8% reduction in the trade-weighted index.
Global shipping costs have fallen but remained volatile.
Delays at ports and limited airfreight options were expected to keep freight costs elevated throughout 2022, agri economist Susan Kilsby said.
The forestry index fell 4.9% following a similar fall the previous month.
High freight costs reduced the value of export logs which prompted a reduction in felling and more logs being supplied to local mills.
Stockpiles of logs in China were now being worked through, which was expected to eventually prompt additional demand, but activity was expected to remain muted until after the Chinese New Year, Ms Kilsby said.
Download the report here: ANZ-CPI-20220112
