Financial market 'looking pretty good' - ASB

Rural Exchange 11/02/2018

The latest ASB ‘Farmshed Economics’ report has just been released.  

This report gives the bank’s economic take on recent rural developments and includes its outlook for rural commodities and the relevant financial markets.

ASB’s senior rural economist Nathan Penny joined Rural Exchange in the studio to go over the highlights of the report.

"Last year was pretty good and we've kicked off 2018 with things looking pretty good generally," he said.

It's hard to find a sector that's weak at the moment.

In the latest report, ASB found the rural picture looks to remain healthy, at least over the first half of the year. But Mr Penny says farmers should be prepared for potential twists and turns later this year.

"Currency has been strong. For example; we've seen, at the end of the year, about 68-69 cents against the US dollar. It has gone as high as nearly 74 cents already this year.

"So that could put a dampener on commodity prices and incomes for farmers," he told RadioLIVE.

"[But] prices generally, even despite a higher dollar, are still pretty good for most sectors"

Watch the full interview with Nathan Penny above. 

Rural Exchange with Hamish McKay, Sarah Perriam and Richard Loe, 5-7am Saturday and Sunday on RadioLIVE with Carter’s Tyre Service. Click here for all the ways to watch and listen.

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