• There are signs of stabilisation in the growth in the US and China: the US Fed proceeded with another US$10 billion cut in their monthly quantitative easing program to US$45 billion, while Chinese industrial activity gained some support from a series of targeted stimulus policies.
•  NAB has revised up its forecasts of Australian GDP in 2013-14 and 2014-15 in light of a stronger expectation for Q1 due to a pick-up in exports. We have changed our rate call and now expect we are at the bottom of the cycle.

In Focus – Poultry and Pork

• Rising grain prices and greater price competition from domestic red meat posed significant challenges for poultry last year, but the industry was generally unfazed, with production and consumption rising and chicken meat retaining its status as the most consumed protein in Australia.
• Higher feed prices over the past year have flowed into higher chicken and pork prices in the short term, but they remain competitive with other substitutes.
• Things took a better turn for the Australian pork industry in 2013-14, driven by lower import competition from the US and better prices for both baconers and porkers.

For further analysis download the full report.
Rural Commodities Wrap – May 2014 (PDF,552KB)