Australia’s agricultural production, which ranges from wheat to canola to beef, is poised for another strong year after the rain-soaked fields, although the exceptional result is unlikely to be repeated in 2022, Rabobank said.
Last year, excessively in east coast regions, irrigation supplies were replenished and soil moisture increased, providing a strong base for production, the bank said in a report. Agribusiness is likely to see good but not record prices this year amid increased costs and a global recession, it said.
Australia is the world’s second largest exporter of wheat, canola and beef. Its importance as a supplier increased even further after Russia’s war in Ukraine and weather disruptions reduced global supplies. A record wheat harvest helped bring global prices down last year from a record in March.
The return to more normal production levels was highlighted in a separate report by Fitch Solutions on Thursday. The wheat harvest is expected to fall by 18% in 2023-24, compared to a record 40 million tons the year before, when La Nina rains end and more neutral conditions arrive. Planting takes place from April to June.
Rabobank expects global wheat and corn prices to fall by mid-year as Brazil has a record corn harvest and a potential recession dampens demand. In the second half of the year, wheat prices are expected to rise due to lower shipments from the Black Sea, while corn continues to weaken.
Winter wheat production in Ukraine is expected to fall by 10% to 20% this year, while drought in Russia makes another record harvest unlikely, the bank said. In addition, Australia’s harvest will be smaller from year to year, it said.
Global canola inventories have improved significantly, with final stockpiles in Canada, Europe and Australia projected to be more than 70% higher year-on-year by mid-2023, alleviating a global oilseed shortage, the bank said.
Bloomberg.
https://www.independent.ie/business/farming/tillage/grain-prices/farming-in-australia-set-for-another-strong-year-after-rains-42334225.html Farming in Australia faces another strong year after the rains
