Outlook poor for Australian commodities

16 June 1999

Outlook poor for Australian commodities

AUSTRALIAS commodities exports in the year to June 2000 will remain depressed but fall less in percentage terms than in the current year to 30 June, the governments commodities forecasting agency said.

The main factors in the poor outlook include a slowdown in world economic growth, continuous high levels of commodities supply and a stronger Australian dollar.

In the current year to June, the value of farm exports is expected to fall 2.4%, mainly due to the steep fall in wool prices and volumes.

The report also notes that some of Australias largest commodities exports including wheat, wool and beef, would see prices improve in the next year.

World wheat prices are expected to show a 9.2% rise.

• Financial Times 16/06/99 page 42