[5 March/Radio NZ]

A recovery in dairy prices drove New Zealand’s main commodities to have their strongest price rise in eight months. According to ANZ Bank, the commodity price index rose 2.8 percent last month which was the second monthly gain in a row. ANZ advised that the lift was broad-based but dairy was the strongest with a 6 percent rise. They added that the dairy price improvement was driven by concerns about a possible early finish to the New Zealand season and cooler weather in Europe. ANZ Senior Economist, Phil Borkin, noted that New Zealand’s terms of trade hit a record high at the end of last year, and that they assumed it will stabilise around that level for the next few years.