Australia upgrades 2020/21 forecast for agricultural exports despite China tensions

The Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) upwardly revised its forecast for agricultural exports for the 2020/21 season, published via Reuters during early Monday.

In doing so, the Aussie body expects agricultural exports will total A$49.24 billion ($36.59 billion) for the current season ending at the end of June 2021, up 1% from its previous estimate of A$48.8 billion in September, said Reuters.

The news piece highlights heavy rains as a positive factor for increased production while citing worries over the mounting trade tensions with China.

“There are a number of risks present for the rest of 2021 that remain a watch point, including wine trade with China,” said ABARES executive director Steve Hatfield-Dodds.

AUD/USD remains choppy…

With the news suggesting a mixed trend for the AUD/USD traders, amid upbeat demand and growing tension with the largest customer China, the quote remains sideways around 0.7430 during early Monday.