Recent Analysis
  • By Matt Dalgleish

The importance of live sheep exports to WA.

Live sheep exports remain in the headlines and some market commentators have suggested that banning the trade for sheep wouldn’t have a significant impact on local markets. While this may be true for the South Eastern states it is an entirely different story out in the West.

Read Article
Sheep
  • By Matt Dalgleish

No news is good news.

At a time when the live sheep export trade is making headlines for all the wrong reasons the big brother of the industry is quietly getting on with the job. Live cattle exports make up the lion’s share of the total trade out of Australia, with the combined beef and dairy trade representing 1.5 billion of the 1.8 billion annual farm gate returns. This piece takes a quick look at how the key markets are faring so far this season.

Read Article
Cattle
  • By Andrew Whitelaw

A Basis instinct.

At Mecardo we are big advocates of splitting your grain marketing into futures and basis. Through taking a more strategic approach to grain sales, it is possible to lock in higher returns, rather than opting for the flat price at the local silo. In this article, we look at the forward physical contracts to determine whether current basis levels are worth locking in.

Read Article
Grain
  • By Andrew Woods

Broad crossbred wool bottoms.

While merino wool prices lead the apparel fibres complex in terms of price, and Australian crossbred prices (mid-micron to the rest of the world) recover and trade at high levels, broad crossbred prices (beyond 32 micron) continue to struggle. This article takes a brief look at the broad crossbred category of wool.

Read Article
Wool
  • By Angus Brown

Dry flooding Victoria – with lambs.

Despite its smaller area, Victoria definitely punches above its weight in terms of lamb slaughter. This year it is killing an even larger proportion of lambs, and last week set a new record. There has been some rain in parts of the state, but it’s not supporting prices this week.

Read Article
Sheep
  • By Angus Brown

A punt on rain will payoff well, if it rains.

In Friday’s weekly cattle comment we identified that heavy cattle prices in NSW were nearing parity with the Eastern Young Cattle Indicator (EYCI) for the first time in nearly three years. For those who are selling cattle, or have since Christmas, the weaker EYCI might represent a buy opportunity. In this analysis we take a closer look.

Read Article
Cattle
  • By Andrew Woods

Crossbreds stage a comeback.

The 28 MPG is up by nearly two dollars on its February low. The old days of low volatility crossbred prices looks to be a thing of the past. This article takes a look at the 28 micron category.

Read Article
Wool
  • By Andrew Woods

Regional variations influence the clip makeup.

Broad merino volumes have fallen heavily this year, exacerbating an already tight supply in a strong wool market. The main regional drivers of this fall have been Western Australia and South Australia, so this article takes a closer look at the micron distribution of merino wool and its regional sources.

Read Article
Wool
  • By Angus Brown

Cattle producer margins to remain good to great.

Last week Matt took a look at the United States Department of Agriculture (USDA) cattle price forecast updates, and fed them into a model. This gives us a prediction for the Eastern Young Cattle Indicator for the coming years. While we don’t know what costs are going to do, we can take a stab and work out how profitable southern cattle producers are likely to be over the coming years.

Read Article
Cattle