AUSTRALIAN rural commodity prices should be helped by the Reserve Bank cash rate cut this month that has led to a fall in the Australian dollar (AUD), National Australia Bank (NAB) Agribusiness says.
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NAB Agribusiness’s May Rural Commodities Wrap said recent good rain had caused a rise in restocker demand for cattle, slowing the slide in prices since March.
It said very low inflation had increased its confidence in the AUD returning to below 70 USc later this year and being in the high 60s in 2017.
In good news for agricultural exporters, NAB did not expect a sustained return above 70 USc until mid-2018. Australian agricultural commodity prices declined overall in April, with the NAB Rural Commodities Index falling 0.7 per cent in AUD terms.
