Australia Agribusiness Monthly February 2015

Much needed January rainfall across many parts of Australia spurred beef prices to record highs in February, while the depreciating Australian dollar has supported returns to Australian agricultural commodity exporters.

photo of Australian plains

Key Highlights

Wheat – Global wheat prices not immune to large production setbacks despite stocks building to 198 million tonnes.
 
BeefFollow up rain and demand from the US will drive prices in coming months
 
DairyDry conditions in New Zealand have been the main catalyst for the recent improvement in prices however, a major recovery in global commodity markets is still a few months away
 
FX –  Further forecast falls in the  AUD/USD reflecting weak economic fundamentals, ongoing signs of slower economic growth in China, potential fore more interest rate cuts
 
Sheepmeat - Sheep prices are expected to remain steady through March with rainfall in early 2015 supporting better quality lambs and strength in the US and Middle East markets