What impact is coronavirus having on our ag sector?

Coronavirus' impact on agricultural markets


This is why the agriculture sector is worried about coronavirus.


Agriculture's vulnerability to the global impact of China's coronavirus has agribusiness bankers worried, lamb, wool and mutton markets are on alert, while the cropping sector is watching to see if it will curtail the availability of crop protection products.

So just how worried should farmers be? Find out here and read the links below for more in-depth industry-specific pieces.

Restockers and rain add fuel to red hot lamb and mutton market

Lamb and mutton sheep prices have kept rattling skywards on the back of widespread rain with the benchmark Eastern States Trade Lamb Indicator climbing another 30 cents in the past week to 853c a kilogram dressed.

The Eastern States Restocker Lamb Indicator has zoomed up 62c during the same time to a record 967c as fatteners and restockers jump into the market.

Their red-hot demand has blown away any short-term impact of China's outbreak of coronavirus (now named Covid-19) on prices.

Read more here.

Coronavirus throws up crop chemical concerns 

The Australian cropping sector is watching anxiously to see whether the coronavirus will curtail the availability of critical crop protection products.

Ross Kingwell, AEGIC chief economist, warns coronavirus could disrupt the crop protection industry here in Australia.

Ross Kingwell, AEGIC chief economist, warns coronavirus could disrupt the crop protection industry here in Australia.

China is the major producer of both ready-made pesticides and the active ingredients that form the base of products formulated in Australia.

Read more here.

Wine sales to China no sneezing matter, but coronavirus may be

Australian wine export values are looming close to the $3 billion mark, but China's caronavirus threatens to undermine our growth push.

After uncorking another three per cent rise in total export sales in 2019, with particularly strong results for high priced wines, the industry is bracing for new year shock waves as Chinese consumers stay at home and restrict their visits to shops and restaurants.

Read all about it here.

Coronavirus outbreak just a hiccup for dairy

Coronavirus is forcing China, Australia's largest dairy customer, to batten down the hatches but Freshagenda analyst Steve Spencer thinks there's little likelihood farmgate milk prices will suffer.

While Mr Spencer noted the most recent NZ futures result saw whole milk powder fall by $400 a tonne, he was confident there would be little impact on Australia.

Read more here.

Quick control the key for wool and sheepmeat exports

Australia's wool and sheepmeat exports to our dominant international market won't be seriously hurt if China can quickly stop the spread of coronavirus, a deadly new strain of flu which is causing panic around the world.

That's the view of Rabobank's head of food and agribusiness research, Tim Hunt.

Read the full interview with Mr Hunt here.

Wool can dodge coronavirus 'bullet' if outbreak mopped up quickly

The Australian wool market can avoid a sustained price fall if China and rest of the world can quickly contain an outbreak of coronavirus.

That's the view of some leading players in the wool trade as growers anxiously await this week's national offering of 34,525 bales.

Read more here.

Coronavirus is a serious threat to WA barley producers according to AEGIC chief economist Ross Kingwell.

Coronavirus is a serious threat to WA barley producers according to AEGIC chief economist Ross Kingwell.

Coranavirus to affect WA barley producers

Western Australian barley growers will likely be the hardest hit in the country as a result of coronavirus, according to a report from the Australian Export Grain Innovation Centre (AEGIC).

The study, which was released on Monday, also found that the coronavirus will much more severely affect WA farmers than the SARS outbreak of the early 2000s.

Read more here.

Wool market shrugs off coronavirus concerns

Often the wool market leads the way, or more likely just recovers quicker than many of the other economic indicators.

Last week saw the wool market in Australia shrug off concerns over the coronavirus and get down to business working on refilling the pipeline.

Many had expected a bit of carnage in the auction rooms, but instead, the market showed considerable strength across virtually every micron group and quality type, as buyers from all parts of the globe had a crack, wrote Bruce McLeish in his column this week.

Lamb prices blast through the $300 barrier as supplies tighten

Lamb prices pushed through the $300 barrier this week despite fears about the impact of coronovirus on sheepmeat exports to China.

Extra heavy lambs fetched $305 (estimated to dress 40kg) at Bendigo on Monday but that price was beaten the next day at Ballarat when heavy shorn lambs sold for $310.

Read more here.

Investors flee to safety in wake of coronavirus

Nervousness from investors across the globe about the threat of coronavirus saw a general fall in agricultural commodity prices at the end of January.

There was a classic exodus from investors to safe havens such as the US dollar and gold while commodities across the board were markedly weaker.

Read more here.

The story What impact is coronavirus having on our ag sector? first appeared on Farm Online.


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