Home > Australian rural exports decline; rural commodity posts gain

Australian rural exports decline; rural commodity posts gain

Supplier News

The Rabobank Rural Economics Monthly for November 2013 provides a useful overview of the key macro developments in the local and global economies while also covering specific economic developments relevant to the agricultural sectors of Australia and New Zealand.

The Australian residential property market is seeing robust recovery; if this momentum is sustained, it is likely to dictate the bottom of the cash rate cycle. This has provided some near term support to the Australian dollar alongside a stabilisation in the growth outlook for the Chinese economy and the delay in tightening U.S. monetary policy; it will also provide much needed stimulus to household consumption expenditure and private investment in related sectors such as building and construction.

The New Zealand labour market has shown further improvement with employment growth continuing to rise and unemployment falling back down to 6.2% in Q3-2013. Significantly, the fall in unemployment has coincided with a significant rise in the labour force participation rate to its highest level in five years and close to its decade high.

Private investment outside of the residential sector remains far more subdued and is certainly not aided by a lack of clarity in public policy. Accordingly, jobs creation in the private sector has maintained a steady but not spectacular rate this year, and as yet has been insufficient to trigger any reversal in monetary policy as the unemployment rate paused around 7.3% in October 2013.

Australian rural commodity posted a modest gain on average in October 2013. Prices for most major commodity groups remained fairly steady through the month with sugar one of the only exceptions to record a gain of any note. The value of Australia's rural exports declined in September 2013 but continues to track well ahead of the same period last year.

New Zealand commodity prices eased on average in October 2013 with wool and sheep meat the only major commodity classes to post a gain on the prior month. The value of New Zealand's rural exports jumped by 27% in September 2013: while dairy export volumes remain relatively flat compared to the same month last year, higher dairy prices are boosting export income to the industry. Rising horticultural, wine, forestry and wool exports also contributed to the strong result.

The complete report is available on the Rabobank website.

Newsletter sign-up

The latest products and news delivered to your inbox