Growth, inflation and labour market all easing
Seasonal conditions remain a major consideration.
This month, the NAB Rural Commodities Index fell to a 15 month low, slipping 7.6% (the biggest monthly fall since the expanded index began in 2010) amid a stubbornly high Australian dollar, retreating grain prices and weakness in cattle. Only four of the 28 commodities that make up the index rose in the month. Seasonal conditions are mixed to poor. While most of southern Australia (below a line stretching roughly from Western Australia’s Shark Bay to Canberra) saw above average rainfall last month, north of the line it remains very dry indeed. Frosts in New South Wales and Queensland have caused potentially considerable damage to winter crops.
Over the coming months, we will be closely watching two areas, the performance of which will be key for the agricultural sector:
For further details, please see the attached report.
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