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ANZ Commodity Price Index Rises in May

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The ANZ World Commodity Price Index climbed 0.7% month over month in May, with all commodity groups in the index seeing incremental gains, according to a Thursday report from ANZ Research.

Over the past year, the index rose 1.3%, with wool jumping more than 75%, aluminum rising over 49%, and beef up more than 25%.

Dairy prices slipped 0.1% sequentially during the month and were down over 11% annually, with higher milk powder prices offsetting lower butter prices, per the report. Over the past year, skim milk powder prices were up nearly 26%, while butter prices were down more than 29%.

Meanwhile, the meat and fiber index edged 0.4% higher from April. Beef and lamb prices were stabilizing near record-high levels, and wool prices increased 14% month over month. Wool is benefiting from strong demand and low supply, tilting the balance toward higher prices, ANZ said.

The horticulture index jumped 3.4% in May, as New Zealand's main produce hit supermarket shelves overseas and early price indications were encouraging.

The forestry index was up just 0.6% in the month. In-market log prices jumped roughly 12% since the Middle East conflict started, but these higher prices are going toward higher shipping costs, according to the report.

Aluminum prices jumped 1.8% month over month and continued to strengthen due to damaged production facilities in the Persian Gulf, ANZ said. The Middle East accounts for around 8% to 9% of global production, and production out of this region was down 35% from pre-conflict levels.

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