Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Rabobank Australia and New Zealand Agribusiness Review Oct

Agribusiness Review
October 2012


Please see attached Rabobank’s latest Agribusiness Review for Australia and New Zealand.

Prepared by our Food & Agribusiness Research and Advisory division (FAR), the report provides monthly commentary on New Zealand and Australian agricultural conditions.

Key highlights:

• A warm end to spring is on the cards for most of Australia according to the Bureau of Meteorology. Climate models surveyed by the Bureau suggest sea surface temperatures in the tropical Pacific Ocean will maintain values around typical El Niño thresholds for the remainder of 2012.
• The US Federal Reserve announced the third stage of its quantitative easing program to help boost investment and spending in the economy. On a negative note, the World Trade Organisation downgraded its forecasts for growth in global trade in 2012 and 2013 by over one percentage point in response to slowing global economic activity.

• The New Zealand dollar has held firm over the course of the past month following the announcement of further liquidity measures in key global economies. The Australian dollar found some relief on the news of the Reserve Bank of Australia’s decision and softer external trade numbers and is currently trading around the USD1.025 level.

• Wheat, corn and soybean prices fell by 10-15% throughout September to levels which are unlikely to see sufficient demand rationing. Across the grains and oilseeds complex, global prices will be well supported through Q4 2012 by the need to ration demand due to low global stocks.

• Over the course of September, the price of domestic US 90CL fresh beef has declined USD 15c/lb to USD 201c/lb. Turning to the local market, the Eastern Young Cattle Indicator (EYCI) finished September at AUD 360c/kg, down from AUD 376c/kg in August. Weaker market prices were a reflection of sluggish restocker and feeder demand due to ongoing dry weather.

• Through September international dairy commodity prices gained strength in US dollar terms for the second consecutive month. Butter was up 14%, WMP up 16% and SMP 21%; cheese saw a modest gain of 6%. Slower production growth from key export supply regions mounting with the EU and the US both falling into negative year-on-year comparables in July and August, respectively, for the first time since early 2010.

• An increase in trading activity is expected to put some upward pressure on global fertiliser prices (in US dollar terms) in the near term. Attention is fixed on the approaching South American and India planting programs; while the low export tax windows (for phosphate and urea) in China will close shortly, reducing export availability.

To view the full report, please follow this link:
Australia and New Zealand Agribusiness Review

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business:
NZ Puts Seven New Oil And Gas Areas Put Up For Tender

A total of seven new areas will be opened up to oil and gas exploration under its block offer tendering system, as the New Zealand government seeks to concentrate activity in a few strategically chosen areas. More>>

ALSO:

Half Full: Dairy Payouts Steady, Cash Will Be Tight

Industry body DairyNZ is advising farmers to focus on strong cashflow management as they look ahead to the 2015-16 season following Fonterra's half-year results announcement today. More>>

ALSO:

First Union: Cotton On Plans To Use “Tea Break” Law

“The Prime Minister reassured New Zealanders that ‘post the passing of this law, will you all of a sudden find thousands of workers who are denied having a tea break? The answer is absolutely not’... Cotton On is proposing to remove tea and meal breaks for workers in its safety sensitive distribution centre. How long before other major chains try and follow suit?” More>>

ALSO:

Scoop Business: NZ-Korea FTA Signed Amid Spying, Lost Sovereignty Claims

A long-awaited free trade agreement between New Zealand and South Korea has been signed in Seoul by Prime Minister John Key and the Korean president, Park Geun-hye. More>>

ALSO:

PM Visit: NZ And Viet Nam Agree Ambitious Trade Target

New Zealand and Viet Nam have agreed an ambitious target of doubling two-way goods and service trade to around $2.2 billion by 2020, Prime Minister John Key has announced. More>>

ALSO:

Scoop Business: NZ Economy Grows 0.8% In Fourth Quarter

The New Zealand economy expanded in the fourth quarter as tourists drove growth in retailing and accommodation, and property sales increased demand for real estate services. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news