NAB Rural Commodities Wrap: November 2021
La Nina is now officially underway, with the Bureau of Meteorology declaring the event on 23 November. Current modelling suggests the event will persist until late summer or early autumn 2022.
While La Nina-like conditions have been present for some time, the official declaration will likely see further interest in livestock, as La Nina events are generally associated with wet conditions in eastern and northern Australia.
November has brought if anything too much rain to already wet cropping regions in Australia’s east. This has pushed harvest back weeks in some areas and could see some quality downgrades. But overall, we remain squarely on track for a monster winter crop.
Grain prices are once again on the rise, reflecting a lower AUD and most importantly strong global price action. Harvest prices are likely to substantially exceed what was expected just a few months ago.
For further details, see the NAB Rural Commodities Wrap November 2021