What’s Happening?
Australian diesel prices continue to rise as global oil costs increase and fuel supplies decline.
According to Bendigo Bank Agribusiness’ October 2026 Monthly Commodity Update, ongoing attacks on ships have forced suppliers to change shipping routes.
Northern Australian fodder markets are also facing upward price pressure. Lower pasture reserves and failed cereal crops have kept demand strong.
Why It Matters
The report identifies two different pressures in Australia’s agricultural markets: rising diesel prices and strong demand for fodder.
Global oil conditions continue to push fuel prices higher. Meanwhile, reduced pasture reserves and unsuccessful cereal crops are maintaining demand in northern fodder markets.
These developments show how international supply disruptions and seasonal conditions are influencing agricultural production costs.
Local Impact
Northern fodder markets are experiencing strong demand despite mixed movements in recorded hay prices.
The report’s indicative August cereal hay price for northern eastern Australia was unchanged from the previous month. However, it remained higher than prices across the other regions listed.
This combination of steady recorded prices and continued demand pressure is an important feature of the northern market outlook.
By The Numbers
- More than 100 cents per litre: How much higher Australian diesel prices are compared with levels before the Middle East conflict.
- $325 per tonne: The indicative August cereal hay price for northern eastern Australia.
- 7.1% lower: The year-on-year change in northern eastern Australia’s indicative cereal hay price.
Zoom In
Hay market conditions vary considerably across Australia.
Southern eastern Australia’s indicative cereal hay price stood at $266 per tonne in August, down 43.4% from a year earlier.
South Australia’s price was $249 per tonne, while Western Australia recorded $235 per tonne. Tasmania had the lowest indicative price among the listed regions at $215 per tonne.
Wetter weather has also delayed hay cutting in southern areas. Bendigo Bank warns that these delays may affect the quality of available hay.
Zoom Out
The Australian dollar has generally weakened over the past couple of months.
Bendigo Bank reports that it dipped below 70 US cents as it searched for support.
The report also tracks global fertiliser prices, diesel prices and temporary water markets as part of its wider assessment of agricultural production costs.
What To Look For Next?
Global oil costs, fuel supplies and shipping disruptions remain important developments to watch.
In northern fodder markets, lower pasture reserves and failed cereal crops continue to support demand.
Southern hay production is another area to monitor. Delayed cutting could affect the quality of supplies available in the coming months.
Together, these conditions will shape the production-cost outlook identified in Bendigo Bank’s October update.
