The ANZ World Commodity Price Index for February 2025 rose by 3.0% compared to January’s increase of 1.8%.
This index monitors the prices of 17 key commodity exports from New Zealand, which encompass dairy products, meat, wool, forestry products, and seafood.
Strongest Monthly Gain In Six Months
A 3.0% rise in February, following January’s 1.8% increase, marks the strongest monthly gain in over six months. This suggests mounting demand or supply adjustments across globally traded goods from New Zealand. Higher prices can indicate stronger international purchasing activity, currency shifts, or production constraints in other regions.
Within the commodity mix, dairy remains a dominant influence. If global buyers are paying more for milk powder or butter, this lifts the entire index. Meat prices also play a sizeable role. Any shifts in demand from key markets like China or the United States often reveal trends in consumer preferences and economic conditions.
Forestry exports add another layer. These raw materials respond to housing and infrastructure trends overseas, making them a useful measure of construction activity. Seafood and wool bring further dimensions, though their market influence is narrower.
A rise of this scale warrants attention for those tracking near-term pricing movements. The back-to-back gains suggest momentum, meaning that short-term contracts, futures markets, and hedging strategies must account for additional strength in export receipts. Exchange rate moves could amplify—or dampen—these adjustments.
Monitoring Global Trade Flows
Watching global trade flows, central bank policy shifts, and rival producers’ supply levels will be necessary. If price increases align with tightening supply chains or stronger foreign orders, upwards pressure could persist. However, should demand soften or competing markets ramp up production, price shifts might reverse quickly.
Trade data over the coming weeks will offer further clarity. Currency valuations will be another piece of the equation—any changes in the New Zealand dollar could either support or dampen returns. As always, price cycles in large commodity groups rarely turn on a single factor, so keeping a broad view will be essential.
