# Eastern Australia’s drought is bad news for agribusinesses « ROGER MONTGOMERY

> Eastern Australia's worsening drought is hurting agribusinesses across the farm sector. Nufarm guided FY2018 EBIT to A$5-10 million versus A$51.6 million a year earlier, and Graincorp, AACo, Elders and RuralCo cited weaker receivals, higher feed costs, lower cattle prices and reduced chemical demand.

- Date: 2018-07-29 · published 2018-07-29T12:00:00.000Z
- Category: weather · region Australia · magnitude medium
- Page: https://feedsoft.ai/events/63983-eastern-australia-s-drought-is-bad-news-for-agribusinesses-roger-montgomery
- Commodities: [Barley](https://feedsoft.ai/c/BARLEY.md), [Wheat (SRW)](https://feedsoft.ai/c/WHEAT.md), [Live Cattle](https://feedsoft.ai/c/LCATTLE.md)

## Why it matters

Drought-driven feed cost increases and herd liquidation point to tighter local feed grain demand and supply for Australian feedlots and livestock, supporting grain and feed prices in the region.

## Read by commodity

- WHEAT: bullish ▲
- BARLEY: bullish ▲
- LCATTLE: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| WHEAT | 2018-08-22 | [Record grain harvest potential for Western Australian farmers as prices spike on east coast drought - ABC News](https://feedsoft.ai/events/63501-record-grain-harvest-potential-for-western-australian-farmers-as-prices-spike.md) | +1.0% | -0.6% |
| WHEAT | 2018-10-10 | [Eastern drought pushes Australian winter crop forecast lower - Grain Central](https://feedsoft.ai/events/62503-eastern-drought-pushes-australian-winter-crop-forecast-lower-grain-central.md) | +8.2% | +4.5% |
| WHEAT | 2021-07-31 | [Wheat set for second monthly gain as drought cuts US yields - Markets - Business Recorder](https://feedsoft.ai/events/46098-wheat-set-for-second-monthly-gain-as-drought-cuts-us-yields-markets-business.md) | +1.8% | +2.3% |
| WHEAT | 2018-05-01 | [Australian wheat farmers plant in dust bowl and pray for rain - The Business Times](https://feedsoft.ai/events/64975-australian-wheat-farmers-plant-in-dust-bowl-and-pray-for-rain-the-business-times.md) | -2.9% | +0.1% |
| WHEAT | 2019-05-20 | [News Archives for Markets - 2019-05-20 - Business Recorder](https://feedsoft.ai/events/5633-news-archives-for-markets-2019-05-20-business-recorder.md) | +10.5% | +9.7% |
| LCATTLE | 2018-09-05 | [Australia's drought impact on cow markets - Seeking answers to the hard questions - Beef Central](https://feedsoft.ai/events/62969-australia-s-drought-impact-on-cow-markets-seeking-answers-to-the-hard-questions.md) | -0.0% | +3.5% |
| LCATTLE | 2022-07-26 | [Drought Status Update for the Missouri River Basin \| July 26, 2022 \| Drought.gov](https://feedsoft.ai/events/13345-drought-status-update-for-the-missouri-river-basin-july-26-2022-drought-gov.md) | -0.8% | +3.3% |
| LCATTLE | 2018-06-07 | [Drought has changed the cattle price outlook - Brownfield Ag News](https://feedsoft.ai/events/64642-drought-has-changed-the-cattle-price-outlook-brownfield-ag-news.md) | +1.7% | -2.6% |

## Sources

- rogermontgomery.com: https://rogermontgomery.com/eastern-australias-drought-is-bad-news-for-agribusinesses/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.