NZ & Australian Agribusiness Review June 2007

Please find attached a link to Rabobank's June 2007 Australia and New Zealand Agribusiness Review.

Prepared by the bank's Food & Agribusiness Research (FAR) division, the report provides monthly commentary on New Zealand and Australia's economic and agricultural conditions. Highlights of this month's report include:

- NZ experienced a true Indian Summer in May with temperatures the warmest on record and record low rainfall in the east and north of the country.

- Both the AUD and NZD continue their climb northwards with the RBNZ setting off a global spike in bond rates in early June by lifting the OCR (cash rate) by 25 basis points to 8% .

- The boom in global dairy commodity prices is beginning to impact farm gate prices despite strong local currencies with Fonterra announcing a forecast payment of $5.53/kg milk solids for New Zealand suppliers in 2007/08.

- Farm gate lamb prices have finally lifted over recent weeks as processing volumes have lowered and the winter seasonal schedule approaches. International prices also lifted during May.

A further shipment of prohibited bone in beef brought the beef trade between the US and Korea to a halt again in early June and with Korea entering its peak buying period. This hiccup is expected to see a near term rebound in interest in beef from Australia and New Zealand.

ENDS

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