In early February we published a piece on the Northern Queensland Young Cattle Indicator (NQYCI) and compared its price and spread movements to the EYCI. A swag of subscriber requests followed asking us to provide a regular update on the NQYCI and to compare it to other price series, such as live export cattle exiting Townsville - at Mecardo we aim to please.
It has been an interesting month, with the conditions in the US wheat belt providing cause for consternation. However, with large global stocks the dam has burst and the market has lost all of its gains since early February. In light of the recent crash, we need to take a look at the seasonality of both futures and local pricing.
A Mecardo reader has asked us to review the effect on price of unskirted preparation. So, In this article we look at the price effect of unskirted wool in the Australian clip, and write of beauty in the wool shed.
The easing lamb prices we have seen since Christmas haven’t just affected finished lamb prices. By some measures, store or restocker lambs have seen even more of a decline. This week we take a look at current store lamb prices, in conjunction with forward contracts, and assess whether there is money in trading.
The AWEX Eastern Market Indicator (EMI) is designed to reflect the general price movement for the greasy wool market, which is a really a collection of linked raw wool markets such as the specialist fine wool categories, merino wool, mid-micron wool, carpet wool, combing wool, carding wool, carbonising types and so on. This article takes a look at the effectiveness of the EMI.
It has been two months since we’ve had a look at short term slaughter forecasts. Recent heavy lamb and sheep slaughter rates brings us back to look at the theory that killing more stock now means fewer for later. But how many fewer, and what will it do to price?
The wheat market has rallied. The biggest concern most growers have when hedging is not whether the market will fall and the unhedged portion will get cheaper, its fear of the market rising, and losing money on the hedge. This is especially the case if production risk is high. Let’s look at options as an alternative.
In February we looked at the question of whether the herd liquidation was underway in Queensland and concluded that it was too early to call, but that the underlying EYCI data indicated that it was unlikely. The release of the January ABS figures on female slaughter and analysis undertaken on annual herd change and the female slaughter ratio in Queensland seems to suggest that the notion of a de-stock being underway (as some industry pundits had proposed) is a load of crock.
Our subscribers choose us because we don’t just report the market news – we explain what’s driving the market, we help them understand what’s important, and what it means for them.
We filter what's important from the 'noise'
Cattle, sheep, wool and grain markets – all in the one place
In-depth market analysis – key market drivers, outlook and trading strategies
Independent and trusted specialists – more than 30 years’ experience
Short articles communicated simply– saving you time
Email alerts to new information – tailored to your interests
Mecardo information is provided to assist in your marketing decisions. It contains a range of data and views on the current market. It is not intended to constitute advice for a specific purpose. Before taking any action in relation to information contained within this report, you should seek advice from a qualified professional. The information is obtained from a variety of sources and neither Mecardo nor Ag Concepts Advisory will be held liable for any loss or damage whatsoever that may arise from the use of information or for any error or mis-statement contained in this report.
Sign up for a FREE BASIC SUBSCRIPTION now to read this article.
Mecardo will send you its latest market analysis outlook delivered to your Inbox as it's published. You will also receive one month Premium access for free.
You tell us what information you want to hear about, so you'll only be alerted to information that is relevant to you.