The ANZ Commodity Price Index slid 0.8% in April to 228.7, and was down 17% on an annual basis. In NZ dollar terms, the index dropped 2.8% in April and was down 8.5% on an annual basis as the kiwi strengthened against the greenback.
"Dairy prices, notably butter, cheese and casein weighed heavily," ANZ Bank New Zealand agri economist Con Williams said in his report.
"These products have been under more pressure in recent months with northern hemisphere inventories building. The likes of US cheese inventory levels have recently hit 10-year highs, meaning more of this product could start seeping into tradable supply."
Butter prices dropped 5.% , cheese slid 1.1% and casein declined 5.9%.
Milk powder prices were largely unchanged in the index, but Williams noted whole milk powder prices had showed some improvement from low levels at recent GlobalDairyTrade auctions. Whole milk powder rose 0.7% to US$2176/tonne at the GDT auction overnight, even as the overall GDT price index fell 1.4%.
Outside of dairy, commodity products had a mixed performance in April, with overall non-dairy prices down 0.3%. Prices for beef were down 2.8%, venison fell 3%, logs slid 1.4 % and wool was 0.3% lower. However, some of the weakness was because of seasonality, Williams said.
The better performers in the month were lamb, up 0.9%, skins ahead 3.3%, apples gaining 0.5% and aluminium rising 3.3%.
Williams said sheep meat returns were improving from low levels as Australian and NZ supply tightened, while aluminium prices had advanced with a broad-based rally in industrial metals because of an improved near-term economic outlook for China and associated restocking.
