US and European markets have begun the new week a subdued mood. But core global bond yields are showing some life, lower across the board while the USD is a tad softer too
March 26, 2014
Rural Commodities Wrap – March 2014
Global equity and commodity markets exhibited increased volatility in the past month, caused by heightened geopolitical tensions in Ukraine, adverse weather events in the US and news of a slowing Chinese economy. December quarter GDP result for Australia was close to trend.
- Global equity and commodity markets exhibited increased volatility in the past month, caused by heightened geopolitical tensions in Ukraine, adverse weather events in the US and news of a slowing Chinese economy.
- December quarter GDP result for Australia was close to trend, but capital expenditure expectations portend a sharp fall in mining investments by 2014-15.
- As such, jobless growth is expected to continue through 2014 in Australia, with unemployment rate still to reach 6½% by end-2014 when a final rate cut is predicted (possibly November).
In Focus – Implications of drought on the agricultural sector
- After two very wet years in 2010 and 2011, extensive drought conditions returned to a significant inland area of eastern Australia since late 2012. The dryness worsened over the course of 2013, with 80% of Queensland now declared drought-affected, the most widespread in history.
- Severe and prolonged drought conditions have forced livestock farmers to offload their stocks for slaughter and crop farmers to reduce their summer crop, and potentially winter crop plantings.
- Average farm cash income disparity has widened sharply in 2013-14, with grain-intensive farms in WA earning around 8 times more than cattle-intensive farms in Queensland.
For further analysis download the full report.
