Rabobank Agribusiness Review February 2009

Please find attached a link to Rabobank’s February 2009 Australia and New Zealand Agribusiness Review.

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

• The summer is again proving to be drier than normal in most parts of NZ this year, drawing down soil moisture levels, albeit not as severely as last year.

• Central banks are aggressively cutting interest rates in New Zealand and Australia early in 2009 as the global economic crisis continues to worsen. Both the New Zealand and Australian currencies weakened through January on the worsening global outlook and lower interest rates.

• News from the global dairy market continues to disappoint and create concerns for the industry with global dairy commodity prices falling further in January, now returning to pre-boom levels in USD terms.

• In NZ cattle prices firmed in January after having fallen late in 2008 on tightening slaughter volumes. Australian cattle prices slipped in January in response to softening global demand and very dry hot weather, with feeder cattle demand from feedlots noticeably lower.

• Global and local grains prices have bounced off their lows seen in November with the CBOT wheat contract rising to US580 c/bushel by the end of January, 22% higher than its low of US475c/bushel on the 5 December.

• The Baltic Dry Index, a proxy for future international bulk commodity demand, finally turned the corner in January, rising 51% from its lows by the end of January, having collapsed by 92% in the second half of 2008. This brings the index back up to 1036points, 36 points higher than its starting level of 1000 points in 1985.

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

Australia and New Zealand Agribusiness Review

ENDS

© Scoop Media