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Commodity price increases sustainable

	While most kiwis were enjoying the sun over the summer holiday season, global commodity prices have gone from strength to strength. Recent increases are sustainable.

	Fonterra lifted the Milk Price to $6.90 per kgms in December. Recent commodity price increases suggests further lifts in the Milk Price are possible.

	High feed input prices and low supplies is positive for the US beef market - imported beef prices have risen to all-time highs. The outlook is positive and is good news for NZ beef prices.

Other sites of interest: www.asbsecurities.co.nz www.asb.co.nz www.commbank.com.au



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Report prepared by:
James Shortall
ASB Rural Economist
Phone: +64 9 337 4263
Fax: +64 9 302 0992


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