Late-May rainfall delivered a strong confidence boost to the agricultural sector, accelerating winter crop planting and establishment—though the focus now shifts to converting this early break into yield. Livestock markets have continued to trade at elevated levels, supported by tight supply across both sheep meat and wool heading into June. In dairy, opening farmgate milk prices held few surprises, with steady incomes ensuring farm margins remain squeezed.
Ag sector outlook
- Cattle: Improved seasonal conditions abruptly tightened local cattle supply, forcing stronger processor competition and lifting prices.
- Horticulture: Reduced vegetable plantings are expected to impact supply from August. Meanwhile citrus season is nearing its peak, though competition from South Africa may impact export pricing for growers.
- Cropping: Late-May rainfall through southern Queensland and northern NSW reset the season, easing northern wheat and barley prices off their highs. Canola ran against the cereal trend with prices supported by a steady global oilseeds market.
- Dairy: New season farmgate milk prices have been announced. Steady incomes against higher input costs will ensure farm margins remain squeezed in the 2026/27 season.
- Sheep: Increasing numbers of lambs from feedlots has resulted in record average carcass weights in the March quarter, with favourable lamb pricing in comparison to grains encouraging growers to put extra weight on stock.
- Wool: Despite mid-month dips from buyers prioritising quality, the AWEX EMI rallied late in May as looming supply shortages renewed bidding.
- Carbon and climate: May rainfall boosts soil moisture ahead of potential El Niño. The 2026/27 Federal Budget was revealed in May with climate, energy sovereignty, and supply chain resilience receiving significant attention as a part of the agricultural agenda.
Bendigo Bank Agribusiness Insights publication(s) are for information purposes only and contain unsolicited general information, without regard to any individual objectives, financial situation or needs. Please refer to the terms and conditions.
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