That Australian commodities boom

Speaking of this commodities boom, and while I was at the website of the Reserve Bank of Australia. News from the Reserve Bank is that the commodities index (all commodities) is down, slightly, for June:

RBA all commodities

Looking only at the annual data, one can see the boom of which I spoke, earlier:

RBA commodities index

The non-rural sector is driving it, and base metals in particular. A recent report by ABARE suggested the same is likely to continue.

ABARE commodity prices

ABARE commodity exports

So commodities are earning more while rural/farming earnings are down (although they’re expected to move up this year. Wool production is declining due to the drought, etc., but prices are high thanks to emerging market demand, and grain and seed prices and production are up). Apparently we’re even managing to deal with the bottle-necked ports. All of which goes into the optimism not only of Australian wage-earners and Australian government tax-earners (especially if this is all going on in an increasing ForEx market for the AUD), but the currency market-players who will hope to take their share from our increasing interest rates.


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