Early autumn rains significantly improved soil moisture reserves across southeastern Australia, boosting farmer confidence as they prepare for winter crop planting. This positive domestic outlook contrasts sharply with increasing global market volatility driven by the recent conflict in the Middle East.
Ag sector outlook
- Horticulture: Recent rainfall events across South Australia and Victoria are likely to impact both the harvest pace and quality of almond and table grapes crops.
- Cattle: Favourable conditions in some cattle producing regions have led to a rebound in restocking activity. Although beef exports remain strong, trade headwinds loom in the medium term.
- Cropping: Global grain and oilseed markets have rallied on renewed volatility, though Australian prices have responded more slowly. Strong exports and tightening northern supplies are supporting barley, while wheat remains more subdued and the key watchpoint as Australia’s export program progresses.
- Sheep: Lamb and mutton prices have held firm in February, but geopolitical factors could dampen demand in the short-to-medium term.
- Wool: Wool prices have continued to lift through to March with growing demand from China and lower supply placing upwards pressure on the market.
- Dairy: Recent lifts in prices on the GlobalDairyTrade platform and February’s rainfall are positive, but renewed conflict in the Middle East means the margin-squeeze is not yet over for farmers.
- Carbon and climate: February's above average rainfall has helped improve soil moisture and lessened the impact of this year's hot and dry summer for some southern regions.
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.
