Australia Agribusiness March 2021

Here are the main highlights for some of Australia’s key commodities. The full report provides an overview of the developments to watch in the upcoming weeks.

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Report summary

• Rural commodity prices are receiving support from adverse weather in the Northern Hemisphere, stock building and investors backing the reflation trade

• La Niña-induced dryness and strong Chinese import demand will likely keep grain and oilseeds prices firm in coming months

• A late season commodity rally is starting to flow through to the farmgate for dairy

• With producer demand waning, cattle prices are expected to continue softening. However, limited cattle supplies should continue to mean prices remain high

• Slaughter numbers dip again which should support sheepmeat prices for the coming month

•Trade tightness, weather risk and speculation to generate volatility for sugar, at least until Brazil’s 2021 harvest

• Cotton markets ride high through February, while fundamentals keep prices supported into late 2021

• Slow and steady recovery for wool, but yet to see real signs of clothing demand picking up

  • Tim Hunt

    Head of RaboResearch Food & Agribusiness - Australia & New Zealand
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  • Emma Higgins

    Senior Analyst - Dairy
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  • Michael Harvey

    Senior Analyst - Dairy
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  • Angus Gidley-Baird

    Senior Analyst - Animal Protein
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  • Cheryl Kalisch Gordon

    Senior Analyst - Grains & Oilseeds
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  • Wesley Lefroy

    Analyst - Agriculture
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  • Charles Clack

    Commodity Analyst
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  • Dennis Voznesenski

    Analyst - Grains & Oilseeds, Animal Protein
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  • Blake Holgate

    Analyst - Animal Protein, Sustainability
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