Home > Rabobank's Australian Agriculture in Focus 2012 report shows Australian agri market effect from geopolitical risks

Rabobank's Australian Agriculture in Focus 2012 report shows Australian agri market effect from geopolitical risks

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article image Rabobank's Luke Chandler explains the findings of its Australian Agriculture in Focus 2012

Rabobank has released its new keynote annual report Australian Agriculture in Focus 2012.  The report indicates that heightened geopolitical and macroeconomic risks are likely to exert a strong influence on the food and agribusiness sector throughout 2012 leading to considerable uncertainty in agricultural markets.

The report shows that given the elevated level of uncertainty associated with the general global economic outlook, the world’s financial, industrial and agricultural markets have all begun to exhibit greater risk aversion, price volatility and a deterioration in demand.

Luke Chandler, GM of Rabobank’s Food and Agribusiness Research & Advisory division explains that there is a real trend of a closer alignment between the agri commodity complex and the global macroeconomy developing. that shows a where the drivers of global economic conditions and financial markets are increasingly influencing global trade in agriculture.

Mr Chandler adds “Geopolitical factors are also becoming a greater challenge for those operating in global agricultural markets which are being increasingly politicised, impacting international agricultural trade, contributing to heightened uncertainty and price volatility”.

A slow year for the global economy dictated by uncertainty about the resolution of the Eurozone sovereign debt crisis has been forecast by the Rabobank report.

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