Rising world prices have punctured the gloom affecting the dairy industry, but grain prices face a flatter future this year and next, with beef export earnings also struggling, reports show.
Prices for dairy commodities rose in August, varying from 3 per cent for cheddar to 28 per cent for whole milk powder (WMP), Rabobank said in its September review. The global dairy trade auction results lifted WMP a further 24 per cent from the 25 per cent rise in August.
The review said WMP's buoyancy was due to strong demand from China and large stockpiles of skimmed milk powder and butter in the northern hemisphere. This brought a lift in Australian dollar dairy export prices, which prompted Murray Goulburn to raise its opening price for the 2009-10 season by 3.5 per cent.
In the grain sector, Rabobank said world prices were now at their lowest since April 2007. Yields and quality in the northern hemisphere harvest were above expectations, which would contribute to a further easing in wheat prices in the second half of the year.
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