Here are the main highlights for some of Australia’s key commodities and economic influences this month. The full report covers the developments to watch in the upcoming weeks.
Climate: July conditions were mixed and largely unfavourable, with light rainfall and renewed dryness in key cropping regions. The spring outlook points to below-median rainfall risk and above-average temperatures accelerating crop and pasture maturity.
Wheat and barley: Wheat and barley prices have found short-term support from export disruption risk, higher energy prices, and tighter corn supply expectations. However, Australia’s improving wheat yield outlook is pressuring local basis, limiting upside for growers despite firmer global benchmarks.
Canola: Canola prices firmed in July as European heat threatened sunflower and soybean output, while energy risk related to freight risks in the Straight of Hormuz and the Red Sea supported the broader vegetable oil market. On the flipside, this year’s record global canola supply limits price upside.
Beef: Australian cattle prices eased through late July as the market contended with a range of uncertainties. Restricted export markets, increased global competition, and local seasonal factors will play on the market over the coming months, removing some of the price strength we saw in 1H 2026.
Sheepmeat: Lamb and sheep slaughter volumes lifted at the end of July, hinting at the beginning of new-season lamb supplies. Price direction remains uncertain: Strong lamb numbers could soften prices further, while limited supply could limit any downside movements.
Wool: Wool prices eased through July despite the market heading toward the winter recess and no auction sales for three weeks. Limited supplies continue to support the market, but eyes will be on the Wool Production Forecasting Committee’s August report to see if there are adjustments in expected volumes.
Cotton: Cotton prices have strengthened as local weather concerns, improving mill demand, and reduced grower selling tighten the market balance for 2026/27. China’s buying activity and reserve releases are strong, while global stocks are anticipated to fall by 6% in 2026/27.
Farm inputs: Fertiliser markets strengthened in July, supported by logistics disruptions, tight supply, and rising raw material costs, and agrochemical inflation continued to add to farm input cost increases.
Sugar: Sugar prices remain range-bound, but weather risks in India, the EU, and Thailand, alongside uncertainty around Brazil’s sugar mix, could support prices. Potential export policy shifts in India could tighten global sugar supply and lift prices.
Dairy: Dairy commodity markets remained under pressure in July. Well-supplied global markets outweighed early signs of slowing milk production growth across major export regions. We expect global markets to become more balanced in the coming months as milk supply growth across key exporting regions continues to stall, providing support for commodity prices.
Consumer foods: Food inflation remained elevated in June, driven by higher prices in foodservice and for key grocery staples, including red meat, milk, and fruit. High supply chain costs, weather-related production risks, and the potential impact of El Niño are expected to keep pressure on food prices.
Interest rate and FX: Market expectations for further RBA rate hikes fell in July following the release of weaker-than-expected inflation figures. We continue to expect one more hike in November and project the Australian dollar to trade around the 0.70 mark over the next three months before rallying to 0.73.
Oil and freight: The breakdown of the memorandum of understanding between the US and Iran sent oil prices sharply higher in July. The decision by the Houthis in Yemen to join the conflict raises risks of even tighter oil supply.
Here are the main highlights for some of New Zealand’s key commodities and economic influences this month. The full report provides an overview of the developments to watch in the upcoming weeks.
Dairy: New Zealand production for June 2026 – the first month of the 2026/27 season – has continued a record-setting trend. Momentum is likely to continue over the season, unless El Niño takes hold in early summer in key dairying regions.
Beef: Beef farmgate prices continue to strengthen as supply returns to more typical seasonal levels. Strong June export volumes and evolving China demand dynamics reinforce New Zealand’s position in an increasingly supply-constrained global market.
Sheep: Sheepmeat markets remain firmly supported by record average export values, strong farmgate pricing, and tightening global supply, with confidence building as the industry approaches the new season.
Farm inputs: Fertiliser markets strengthened in July, supported by logistics disruptions, tight supply, and rising raw material costs, while agrochemical inflation continued to add to farm input cost increases.
Interest rate and FX: As we foreshadowed last month, the RBNZ raised the OCR to 2.50% in July. We project further rate hikes in September, December, and February. The New Zealand dollar has rallied sharply on higher interest rate expectations.
Oil and freight: The breakdown of the memorandum of understanding between the US and Iran sent oil prices sharply higher in July. The decision by the Houthis in Yemen to join the conflict raises risks of even tighter oil supply.
World Farming Agriculture and Commodity news - 3rd August 2026
Fendt has launched a limited edition 900 Vario model to mark production of 50,000 900 series. 30 years on from the first 900 Vario, the latest anniversary model features an engraved ’50,000’ door sill, embroidered floor mats with an anniversary logo, super comfort seats trimmed in titanium leather and an anniversary badge on the chromed bonnet.
“This special edition 900 Vario is limited to 300 models which are available to order from Fendt dealers now. The 900 Vario was unveiled at Agritechnica in 1995 and was the world’s first tractor to feature continuously variable, power-split transmission. Since that launch it has proved remarkably popular worldwide for a wide range of applications,” says Fendt’s Ed Dennett.
The anniversary model reflects on some of the past models, with paintwork reminiscent of the 2005 Design Line. Four colourways have been released, including the trademark black that led to the 2005 model being christened the ‘Black Madonna’, steel blue, black/red and nature green.
“The 900 has long been the tractor of firsts. A true pioneer, it was the first to feature the electronically controlled fuel injection system and the first to benefit from Fendt’s Vario Terminal. The subsequent 2003 model was the first Fendt operated with the new Tractor Management System (TMS) which electronically linked the engine and transmission and automatically adjusted the revs to match the power requirement,” says Mr Dennett.
2005 saw the launch of the 936 Vario with a Deutz 360hp engine, independent wheel suspension, a new cab and a class-leading 60km/h top speed. The fourth generation that followed in 2010, increased power output to 390hp from a 7.8 litre Deutz engine. This model was the first to be fitted with VarioGrip, a revolutionary onboard air system to regulate tyre pressure from the cab.
“Innovations like VarioGrip have kept the Fendt 900 Vario one step ahead over the 30 years it has been manufactured. VarioGrip was Fendt’s way of demonstrating a commitment to providing powerful tractors that could reduce soil compaction and fuel consumption,” adds Mr Dennett.
In 2013, the fifth generation of the 900 Vario was fitted with another new Deutz power plant, this time with steel pistons and two turbo chargers of different sizes, along with a new intercooler which replaced the previous turbo charging system. For many, the new reversible fan was a game changer because it helped the engine breathe in dusty environments which significantly reduced downtime.
The current sixth generation, on which the special edition is based, was released in 2019. It took the latest single mode VarioDrive with four-wheel drive from the larger 1000 series, and the range topping 942 has 415hp provided by a 9.0 litre MAN engine. Two years later, the operating system was updated to run the now widely used FendtONE system which has transformed workflow between office and tractor.
“It is a fitting mark of appreciation that Fendt has chosen to recognise the importance of the 900 Vario with this new 50,000 limited edition model. Demand will be high and we expect the 300 tractors will find their owners very quickly,” concludes Mr Dennett.
Wholesale pork prices in Greater São Paulo averaged BRL 8.41 per kilogram in July, down 1.9% from June, as supply outpaced demand.Market participants attributed the decline to an influx of hogs from southern Brazil into the São Paulo market. Beef prices also fell over the period, with the decline more pronounced than for pork, while chilled chicken prices remained stable. As a result, pork became more competitive relative to chicken but less so relative to beef.
Fed cattle prices remained firm in Brazil's domestic market in late July, supported by relatively tight supplies of slaughter-ready cattle in many producing regions and strong beef export performanceHowever, weak domestic demand limited further price increases. Consumer purchasing power remains under pressure, with some buyers switching to cheaper proteins including chicken, pork and eggs, slowing beef sales and reducing packers' ability to pass higher costs through the supply chain.The Cepea/ESALQ Index for fed cattle in São Paulo state closed at BRL 346.55 on July 31, up 3.02% from June 30. The monthly average for July was BRL 335.50, down 3.47% from June's average of BRL 347.59.
Chicago Mercantile Exchange (CME) livestock futures fell on Thursday, tracking US stock markets lower, as investors digested the latest round of corporate earnings and looked for signs of progress toward a peace deal between the US and Iran.
Market analysts said that funds and other beef traders reacted negatively to what has been a relatively sleepy cash market this week, with limited trades of $235 per hundredweight (cwt) both in the northern and southern regions - and despite the fact that those cash trades were up $3 per cwt from a week earlier.
"So goes the stock market, so goes the confidence in people paying for high-priced meat," said Don Roose, president of US Commodities. "People are starting to grow concerned about consumer demand for beef longer term, especially now with the economy being a little shaky."
"The trade knows that the supply is, for the most part, staying the same. So the focus is going to be on demand," Roose added.
Meanwhile, beef wholesale prices were mixed on Thursday afternoon. The US Department of Agriculture priced choice cuts of beef sharply lower at $362.87 per cwt, down $5.10. Select cuts were priced 97 cents higher at $349.03 per cwt.
CME August live cattle futures settled down 2.950 cents on Thursday at 231.225 cents per pound. Most-active October futures ended 4.550 cents lower at 224.925 cents a pound.
CME August feeder cattle futures fell 5.275 cents to 348.050 cents per pound, while all back-month contracts also ended the session lower.
Hog futures also fell. The USDA priced the pork carcass cutout on Thursday afternoon at $99.26 per cwt, down $1.79 from Wednesday.
CME August lean hog futures settled down 1.100 cents at 95.500 cents per pound. October hogs ended 1.300 cents lower at 81.725 cents per pound.
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