AUSTRALIAN producers hopeful that the predicted drop in commodity prices will be offset by a more favourable foreign exchange climate will have to wait until 2011 for relief, according to a Commonwealth Bank of Australia (CBA) forecast released last week.
In spite of some weakness in the dollar this week, the CBA figures predict a close to parity scenario throughout most of 2010, with a peak figure of US98c to hit in June.
By next year’s harvest it is expected to have dropped, with the December 2010 forecast sitting at US90c.
This is in spite of a weakness in commodity prices, which have a strong impact on the Australian dollar.
However, the CBA forecast tied in with forecast rises in Australian interest rates, which will maintain the Australian dollar’s status as a solid investment.
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