NZ: Better Merchandise Trade data – ANZ

Susan Kilsby, agriculture economist at ANZ, notes that New Zealand’s posted an unadjusted monthly trade deficit of $1.56bn in August, slightly larger than the market anticipated.

Key Quotes

“On an unadjusted basis, export returns were up 3.8% y/y in August while imports were up 2.7%.”

“Dairy export volumes were down 6.5% on a seasonally adjusted basis, while meat exports lifted 5.8%. Exports of forestry products were down 4.9% on a seasonally adjusted basis, mainly on the back of lower volumes rather than lower prices.”

“Looking forward, export volumes for September will be bolstered by the seasonal increase in dairy production. Meat volumes are expected to remain low due to the smaller lamb crop last season, and strong seasonal pasture production keeping cattle on farms.”