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Insights September 2020 - All commodities

7 September 2020 |Insights
Farm equipment on field

Insights September 2020 - All commodities

7 September 2020 |Insights

The Insights Update for September provides commentary on production and pricing trends for Australian agriculture alongside an outlook for the coming months. This month’s update focuses on cattle, cropping, dairy, horticulture, sheep and wool.

Driven by strong restocker demand and tight domestic supply, Australian cattle prices are expected to push further into record territory this spring. Strong domestic demand is expected to help the market largely resist headwinds from reduced competitiveness in export markets.

August rainfall was mixed however the outlook for a wet spring has improved supply forecasts in cropping, dairy and sheep. Demand for all commodities continues to remain subdued or uncertain. Global dairy prices are expected to fall for the rest of the year and lamb and mutton demand is low due to reduced foodservice demand.

In horticulture, lime prices have been the standout change in the past month. Domestic lime prices are two and a half times higher year on year as demand strengthens due to consumers looking for immune boosting foods including citrus.  Lower supply following heavy frost earlier this year in Queensland has also been a supply constraint.

The downturn in the wool industry has continued, with prices falling to levels not seen in several years. The prospect of a demand-led rebound in the wool market this year looks unlikely.

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