NZ: Soft commodities outlook in dry summer - ANZ

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Dec 8, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Guatemala) - Analysts at ANZ explained that the farming season continues to be a challenging one for some regions. While holiday-makers will be looking for good weather over the Xmas/New Year period, farmers on the east coast from Dunedin through to the Wairarapa will be looking for rain.

    Key Quotes:

    "While conditions are quite variable, many areas within these regions continue to suffer from fairly significant soil moisture deficits. Now that the effects of El Nino are forecast to continue through to the autumn period, it seems likely that many of the already dry areas are in for a tough summer period.

    Farmers generally seem well prepared and are already taking action. That said, dairy farmers in these regions don’t need any more challenges and many other livestock farmers don’t have the same access to irrigation as dairying.

    Those who are facing their second significantly dry summer, don’t have irrigation, or water takes are already being restricted (such as parts of North Canterbury) face more difficult and potentially expensive choices. There are a lot of moving parts as always, but these conditions and their impacts on agricultural production and soft commodities markets will need to be closely monitored through the next few months."
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