Rabobank

Widespread global disruption to supply is set to see Australian farmers again move to lock in fertiliser and other inputs early for the season ahead, Rabobank says in a recently-released report. This is despite global fertiliser prices at near-decade highs and expected to remain elevated in the short to medium term.

Strong month-on-month price increases for most commodities saw Australian agribusiness industry conditions rise to record levels, according to Rabobank, and key drivers are expected to hold out to the December quarter. The latest Rabobank Rural Commodity Price Index rose by another 3.26% in August to its highest-ever reading.

A second consecutive year of good seasonal conditions and high commodity prices is helping shield Australia’s farm sector from the broader economic uncertainty of COVID-19, with farmer sentiment surging in recent months, according to the latest quarterly Rabobank Rural Confidence Survey. The survey reveals Australian farm sector confidence is at one of its highest levels in the survey’s history due to ongoing positive seasonal conditions and exceptionally-high commodity prices, with more than 90 per cent of Australian farmers expecting the current conditions to continue or improve further over the coming 12 months.

Strong increases in nearly all commodity prices saw the Rabobank Rural Commodity Price Index lift by 3.26 per cent in August to its highest level on record. This includes going beyond the Covid-induced commodity price surge of March 2020.

New leader, sustainability, dairy alternatives, and changing demographics shaping the future. Rabobank’s annual Global Dairy Top 20 report shows the combined turnover of the top 20 industry leaders fell by just 0.1% in US dollar terms, following the prior year's 1.8% gain.

Restrictions on beef exports out of Argentina – the world’s fifth largest exporter of beef – could have a significant impact on the global market, according to Rabobank’s latest global Beef Quarterly report.

Excellent seasonal conditions and strong prices are fuelling a positive outlook for Australia’s cotton sector, with expectations next year’s crop could be one of the largest on record, according to  agribusiness banking specialist Rabobank.

Softs stole the show in July, as frost hit the heart of the Brazilian arabica coffee belt and also impacted sugar. The worst frost in 27 years led to ICE Arabica jumping by 27% and Robusta by 12% so far in July (coffee trees are very susceptible to frost damage), while sugar jumped 4.7%.

Local commodities prices have continued to show gains despite some global measures softening, while the beef market can expect further record prices, according to Rabobank. The outlook will provide more confidence for farmers, after its recent quarterly survey showed 2021 is shaping up to be an “instrumental” year in the long-term prosperity of the Australian farming sector, with almost 90% of farmers expecting the strong business conditions to either continue or improve over the year ahead.

The commodity price boom – which has seen some agricultural commodities rise to seven-year highs in recent months – has “rubbed off” on the wool market with prices recovering from last year’s lows, albeit not to the same heady highs, according to agribusiness banking specialist Rabobank.