New Zealand's export wool prices hit a record high in October

According to the latest report, the New Zealand commodity price index rose by 3.5% in October compared to the previous month and surged 31% year-on-year. However, when measured in New Zealand dollars, the monthly increase was just 0.8%, and the annual growth rate has slowed to 28%. The index is also 2.7% below its record high set in May this year. Out of the 13 key export commodities in New Zealand, nine saw price increases. Only beef, sawnwood, and apple prices declined. Global wool prices climbed by 29%, hitting a 21-year high, while in New Zealand dollar terms, wool prices also reached their highest level in seven years. ANZ Bank economists noted that the recent surge in wool prices over the past two months has been driven by increased demand from Mainland China, which accounts for 38% of New Zealand’s wool exports. In addition, leather, aluminum ingots, and seafood prices rose by 10%, 8%, and 2% respectively in October. Mutton and raw material prices also increased by approximately 3% to 4%. The Ministry of Finance in New Zealand explained that the weaker U.S. dollar has contributed to higher global commodity prices, as many are quoted in U.S. dollars. With expectations of further monetary easing in the U.S., some commodity prices are likely to rise further in the coming months. As global markets remain sensitive to economic shifts and trade dynamics, New Zealand’s commodity sector continues to show mixed but overall positive trends, supported by strong international demand and favorable currency movements. This could have long-term implications for the country’s export performance and economic outlook.