TUESDAY'S release of Bendigo Bank Agribusiness’ Monthly Commodity Update found that US tariffs should have less impact on agriculture than initially expected, however dry conditions across key cropping regions still have grain producers on edge.
Lamb markets are stable with wool a bright spot, while supply chain issues for fruit and vegetables have seen a lift in wholesale prices on the east coast and a struggle to get new crops in the ground due to soggy conditions.
Bendigo Bank Agribusiness senior manager of industry affairs Neil Burgess said the 10 per cent US tariff was expected to translate into a 'minimal reduction' of Australian beef export volume to that market, with it expected to continue at high levels.
"At this stage, the only limiting factor to exports is the processing capacity of local centres due to supply chain issues,” Mr Burgess said.
“Barley and canola exports are running well ahead of pace, helped by strong early-season shipments, but wheat is lagging.
"China (is) mostly absent from the market and the appetite for wheat imports remaining soft, held back by large domestic supplies and soft quota limits."
Mr Burgess said the weather would remain in focus as farmers headed into sowing, particularly across southern cropping regions where conditions remain critically dry.
Australian wool was welcomed by the report as a 'bright spot' with the market gaining ground over the past month and the AWEX eastern market indicator (EMI) finishing higher in five out of the last six weeks to now sit at 1249c/kg, a 54c increase since the last selling week in February and up 9.4 per cent from this time last year.
