By Xinhua,
Canberra : Australia’s major bank Westpac’s Commodity Index for June showed on Monday that prices of the agricultural exports fell over the past month, with wheat and sugar hit hardest, and the strong Australian dollar should be blamed.
The index report said overseas buyers were turned off by the currency, which is currently trading at over 96 U.S. cents, a 24-year high.
The report pointed out that as one of Australia’s most trade-exposed sectors, agriculture has been feeling the pinch from the ever-strengthening Australian dollar.
The report, co-commissioned by the National Farmers’ Federation, also estimated the strong Australian dollar had cost farmers 1.9 billion Australian dollars since May 2007.
Global wheat prices dropped 13 percent in May. World sugar prices dropped almost six percent the same month, while wool continued its long price slide with an eight percent fall. Barley, canola, cotton and dairy prices also fell a little in May.