The commodity data comes after dairy product prices fell to their lowest level in almost six years in the GlobalDairyTrade auction overnight, amid concern about the end of milk quotas in Europe, Russia's trade embargo and sluggish Chinese demand. Fonterra last month lowered its farmgate milk payout for 2014-15 by 10 cents per kilogram of milksolids to the lowest level in eight years.
In the ANZ series, dairy prices fell 8.2% in May and were down 36% from the same month last year. Skim milk powder dropped 13.2% and whole milk powder fell 10%.
ANZ Bank agri economist Con Williams said end-of-season NZ supply has been higher than expected after improved autumn conditions, especially in the North Island. Prices were also hurt by "lacklustre China demand and increased competition from European skim milk powder," he said.
Meat prices fell 2.9% in the latest month, led by a 5.7% drop in beef prices. Lamb fell 4.2%. The horticulture sub-group gained 1.5% and aluminium rose 0.6%.
Forestry prices declined 0.6% on weak prices for logs, while wood pulp and timber were little changed. Seafood rose 0.2%.
The NZ dollar index declined 2.7% and was down 7.9% from a year earlier, reflecting the weaker kiwi and is now at the lowest level in more than two years.
