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.

Download-full-report

Report summary

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.

  • Cheryl Kalisch Gordon

    Senior Commodities Analyst; Head of RaboResearch Food & Agribusiness – Australia & New Zealand, a.i.
    Read more
  • Angus Gidley-Baird

    Senior Analyst – Animal Protein
    Read more
  • Michael Harvey

    Senior Analyst – Dairy & Consumer Foods
    Read more
  • Wesley Lefroy

    Senior Analyst – Agriculture
    Read more
  • Emma Higgins

    Senior Analyst – Agriculture
    Read more
  • Genevieve Steven

    Analyst – Agriculture
    Read more
  • Dennis Voznesenski

    Analyst – Agriculture
    Read more