Australia’s mainstay commodities continue to be well supported by a strong balance of domestic and international demand in those situations where trade can freely occur. A low Australian dollar and record low borrowing costs tend to support Australian farmers and exporters. Recent rains in eastern Australia, improving conditions in Western Australia, and the Bureau of Meteorology short term outlook, are very encouraging for the upcoming season.
While the full impact of the pandemic is not yet known in relation to red meat markets, slightly softer prices would still make for profitable selling and more affordable buying for re-stockers.
Grain markets are hard to pick, with oilseeds perhaps particularly vulnerable, but the seasonal outlook at least is good. After a long run of record cattle on feed, it will be interesting to see how domestic feed need intersects with a new crop and international feed and milling demand.