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.


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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