We expect NAB’s Non-rural Commodity Price Index to move slightly higher in Q4
Insight
June 1, 2015
Quarterly Agribusiness Survey – March 2015
Post-farmgate conditions were lower than expected despite the March and June quarters generally being seasonally the weakest quarters in the NAB Post-farmgate Agribusiness Survey.The weakness in the results likely reflects mixed climatic conditions.
Key Points
- The March and June quarters are generally the seasonally weakest quarters in the NAB Post-farmgate Agribusiness Survey. However the results for the March quarter 2015 are mostly below even historic seasonal levels.
- Post-farmgate business conditions fell considerably in the March quarter to -13, down from +1 in the December quarter 2014 and below the five year March quarter average of -6. Expectations for the June quarter have also fallen to -12. Meanwhile confidence fell to -18, and trading conditions and profitability conditions were also sharply lower.
- The weakness in the results likely reflects mixed climatic conditions, with encouraging rainfall in parts of Queensland at the start of the quarter, but a disappointing finish to the northern wet season and dry conditions in much of the south.
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