News - General Agriculture Articles

Agribusiness update

Since the improvement in seasonal conditions over the summer, cattle prices have recovered from last year’s lows. The Eastern Young Cattle Indicator (EYCI) fell to a nine-year low in October 2023, reaching 349c/kg, as last year’s El Nino event saw much of the country experience heat wave conditions. While prices remained depressed for the month of October, an improvement in seasonal conditions and well above-median rainfall saw prices recover in December, closing out the year at 534c/kg.

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Rabobank North American Agribusiness Review

Autumn Outlook Remains Positive

The NAB Rural Commodities Index increased for the fourth month in a row in February. The index increased 2.2% month-on-month, and is back around levels last seen in April 2023.

Weekly property review: Why are Australian institutional investors shy of the ag sector?

Kay’s Cuts: Australia primed to fill big void in US beef supply

The month of April saw mixed results for the beef market. Cattle prices stabilised, indicating a return to normalcy and support for prices at current levels. However, there was a decline in live cattle exports, and cattle on feed numbers remained relatively steady. Export volumes to key markets such as the US, South Korea, and China saw significant increases compared to the previous year. Overall, the beef market is cautiously optimistic, but the large volumes in storage in China and soft consumer markets pose challenges. The upcoming season's milk price is expected to be lower than the current high levels, but historically elevated milk prices will still support farmgate margins. The decline in milk production in Australia moderated in March, with stability seen in Western Australia and growth in Tasmania. However, eastern Victoria experienced the largest volume falls. Oceania commodity returns showed resistance in April, with year-on-year commodity prices down significantly. Live dairy exports to China underwent a major change, potentially impacting the demand for heifers from Australia. CBOT Wheat and Corn prices declined in April, while Soybeans remained mostly unchanged. The successful operation of the Black Sea grain corridor and strong Russian wheat exports cooled wheat prices. However, EU disunity on Ukraine's western border and threats from Russia create upside risks. Canola prices increased, particularly for Australian non-GM track prices. Fertiliser markets showed different paths, with nitrogen prices rising due to increased demand, while phosphate and potash markets sustained similar fundamentals with oversupply. The Australian food price inflation eased but remained elevated, with mixed results across the food basket and deflation observed in lamb prices.