Rabobank Agribusiness Review October 2008

Rabobank Agribusiness Review

Please find attached a link to Rabobank's October 2008 Australia and New Zealand Agribusiness Review.

Prepared by the bank's Food & Agribusiness Research and Advisory division, the report provides monthly commentary on Australian and New Zealand economic and agricultural conditions. Highlighted in this report:

• In New Zealand, seasonal conditions improved as the heavy rains of recent months eased and warmer weather brought good pasture growth.

• While the USD rose against most currencies, the AUD and NZD conceded more ground than most, as investors fled currencies perceived to entail higher risk or which are strongly dependent on global economic growth.

• Falling local currencies offset much of the change in input and output prices seen during the month for Australian and New Zealand farmers.

• While rainfall was above average in much of the north of Australia in September, it proved another dry month in most southern regions. Rabobank has trimmed its winter crop forecast as a result.

• September brought extreme volatility in financial and currency markets, with a sharp global economic downturn now looking increasingly likely.

• The price of most internationally traded agricultural commodities fell 10%-15% in September/early October. Price falls generally reflected the influence of a stronger USD and a deteriorating outlook for demand. Reflecting the same factors, the prices of key inputs also fell - including fertiliser, oil and bulk freight rates.

To view the full report, please click on the link below:

Australia and New Zealand Agribusiness Review

ENDS

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