"The growth in export earnings forecast for 2007-08 mainly reflects increased shipments of iron ore, coal, LNG, copper, grains and oilseeds in response to strong demand in overseas markets," Mr Glyde said.

The total value of Australia's minerals and energy exports is forecast to rise by 8 per cent to $116 billion in 2007-08, following a forecast rise of 17 per cent to $108 billion in 2006-07.

In 2007-08 iron ore is forecast to be Australia's largest export commodity (in value terms), followed by metallurgical coal, gold and nickel.

Under the assumption of average seasonal conditions, the value of farm exports is forecast to be $27.2 billion in 2007-08, compared with a forecast $26.3 billion in 2006-07. Agricultural commodities for which export earnings are forecast to rise in 2007-08 include most grains and oilseeds, beef and veal, lamb and cheese.

Farm export prices are forecast to increase by 2.5 per cent in 2007-08. While world indicator prices are forecast to average lower in 2007-08 for wheat, wool and sugar, the effects are more than offset by forecast higher prices for corn, soybeans, cotton and dairy products.

Over the medium term, the value of Australian commodity exports is projected to rise in real terms in 2008-09, before gradually easing toward the end of the projection period. By 2011-12, Australian commodity exports are projected to be worth around $141 billion in 2006-07 dollars, 2 per cent higher than in 2006-07.