4 . WEATHER OUTLOOK REMAINS FAVOURABLE FOR AGRICULTURE
Higher commodity prices have in part been driven by great weather conditions in Australia , at a time when major agricultural producing areas saw challenges with very cold weather ( e . g ., Russia ) or very hot weather and drought ( e . g ., the US ). Weather conditions are out of our control but the performance of Australia ’ s agriculture sector is so dependent on it .
It ’ s therefore good news that the Department of Agriculture , Water and Environment have forecast that the La Niña event is expected to continue to result in above average rainfall in eastern and northern Australia in the summer of 2021 – 22 . This will generate favourable growing conditions for summer crops and pasture production . On the flipside , it will lead to below average rainfall in many of the major grain producing regions elsewhere in the world . Good weather in Australia , and poorer weather elsewhere will mean elevated pricing at a time when Australia is able to more easily produce a range of agricultural items .
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