Euro supporting New Zealand’s largest goods export, dairy - ANZ

Analysts at ANZ noted that recent currency movements seem to be providing some positive support for commodity prices. 

Key Quotes:

"While the focus is usually on the USD (and its recent weakness is no doubt helping global commodity prices) the Euro also appears to be supporting New Zealand’s largest goods export – namely dairy. 

While US milk supply continues to grow steadily (1.5-2%) and the lower USD is making exporting more attractive, Europe remains New Zealand’s largest direct competitor.

With milk production struggling due to weather challenges and the 10% appreciation in the EUR/USD since the start of the year, both appear to be weighing on their export volumes. This dynamic looks to be providing some support to global dairy prices at present."