Australia Agribusiness October 2021: Prices Staying Sky High
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.
• Commodities: Continuing tight global markets for agri-commodities together with a softer AUD is expected to maintain strength in local farmgate prices for the balance of this year.
• Grains & Oilseeds: Tight global stocks to keep prices elevated this year and into 2022.
• Dairy: A weak start to the Oceania milk season’s is providing commodity price support.
• Beef: Favourable seasonal outlook suggests producer demand will continue to support prices.
• Sheepmeat: A slight hiccup in prices but seasonal decline still expected.
• Cotton: New US crop supply should ease prices from current highs, but the tight global market is expected to keep prices elevated for at least six months.
• Wool: Outlook still positive but dimmed by declining consumer sentiment due to the Delta variant of Covid-19.
• Downstream Markets: A Delta variant outbreak takes its toll on China foodservice markets.
• Farm Inputs: Policy changes in China have heightened the risk of Australian farmers not being able to access local supplies for next season, meaning high prices, and a high level of supply risk, is set to continue into 2022.
• FX: Rabobank continues to see scope for the AUD/USD to move lower before managing a mild recovery to USc 74 on a 12 month view.
• Oil: Brent crude prices increased during September and further in early October, exceeding 80 USD/bbl.
Where to go from here
Cheryl Kalisch GordonSenior Commodities Analyst; Head of RaboResearch Food & Agribusiness – Australia & New Zealand, a.i. Read more
Angus Gidley-BairdSenior Analyst – Animal Protein Read more
Michael HarveySenior Analyst – Dairy & Consumer Foods Read more
Wesley LefroySenior Analyst – Agriculture Read more
Emma HigginsSenior Analyst – Agriculture Read more
Genevieve StevenAnalyst – Agriculture Read more
Dennis VoznesenskiAnalyst – Agriculture