Agricultural stocks were ditched by investors yesterday after the government's commodities forecaster warned the value of farm exports would fall because of the runaway Australian dollar.
ABARE yesterday forecast crop production to rise this financial year, but revenue from overseas sales of rural goods would drop to $31.1 billion in 2009-10 from $31.9 billion in 2008-09.
The Australian Financial Review reports that shares in rural services firm Elders plunged 4 per cent to 23.5ยข, extending this year's decline to 64 per cent. Wheat exporter AWB fell 3 per cent to $1.44, taking losses this year to 43 per cent, while Australian Agricultural Company declined 3.5 per cent to $1.51, adding to a 20 per cent downturn this year.
"We are positive on the sector over the medium to longer term. Over the short term, there will be difficulties," said RBS Morgans senior analyst Belinda Moore.
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