Agricultural commodities: March quarter 2020

​​​​The March 2020 edition of Agricultural commodities contains ABARES latest outlook for Australia's key agricultural commodities for 2019–20.​​​

Market forecasts

Agricultural overview

In 2019–20 the value of farm production is forecast to fall by 3% to $61 billion.

The value of farm production remains high despite recent drought conditions.

Australian crop report

Global economic growth is assumed to be 3% in 2019 and 3.4% in 2020.

Production prospects for summer crops in 2019–20 remain well below average

Economic overview

Global economic growth is assumed to be 3% in 2019 and 3.4% in 2020.

Global economic growth to be 3.3% by 2025.

Seasonal conditions

Global economic growth is assumed to be 3% in 2019 and 3.4% in 2020.

Global production conditions generally favourable. Heavy rainfall in January and February brings relief to parts of Australia.

Wheat

Global economic growth is assumed to be 3% in 2019 and 3.4% in 2020.

Wheat prices to rise marginally due to lower supply in major exporters.

Coarse grains

Global economic growth is assumed to be 3% in 2019 and 3.4% in 2020.

Corn prices to remain low with high production forecast. Barley prices to rise slightly, but remain low.

Oilseeds

Global economic growth is assumed to be 3% in 2019 and 3.4% in 2020.

Canola prices to rise in tandem with demand for vegetable oils.

Sugar

Global economic growth is assumed to be 3% in 2019 and 3.4% in 2020.

Sugar prices to rise due to lower world production.

Wine and wine grapes

Global economic growth is assumed to be 3% in 2019 and 3.4% in 2020.

Below average wine grape production to put upward pressure on prices.

Horticulture

Global economic growth is assumed to be 3% in 2019 and 3.4% in 2020.

Lower fruit and vegetable production to lead to higher domestic prices.

Natural fibres

Global economic growth is assumed to be 3% in 2019 and 3.4% in 2020.

Cotton prices to fall due to increased global production and high stock levels. Wool prices to rise due to demand for woollen apparel outpacing recovery in apparel wool production.

Beef and veal

Global economic growth is assumed to be 3% in 2019 and 3.4% in 2020.

Australian cattle prices to rise as herd rebuilding reduces supply.

Sheep meat

Global economic growth is assumed to be 3% in 2019 and 3.4% in 2020.

Lamb prices expected to remain near record highs because of strong International demand, and dry seasonal conditions.

Dairy

Global economic growth is assumed to be 3% in 2019 and 3.4% in 2020.

Milk prices to fall due to global production increases.

Pigs and chicken

Global economic growth is assumed to be 3% in 2019 and 3.4% in 2020.

Pigs and chicken meat production to recover from 2020–21 onwards to meet domestic demand.

 
 

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If you have any feedback about this publication or our forecasts, please contact us at ABARES Commodities.

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​Document Pages File size
Agricultural commodities – March 2020 PDF​  113 14.8 MB
Forecast data – March 2020 XLSX 12 171 KB
Historical data – March 2020 XLSX 45 548 KB

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Last reviewed: 21 May 2020
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