Surging beef export prices in recent weeks haven’t been fully reflected in beef processor’s bottom lines yet. Lower offal and hide prices, and higher cattle input values have taken some of the gloss off average monthly margins for October.
Recently there have been plenty of reports regarding rising land prices despite the drought. Where there hasn’t been drought this spring has brought even stronger price rises. In Western Victoria and South East South Australia some land values have doubled in the last five years. There are plenty of questions being asked about whether money can be made at these levels. Here are the back of the envelope calculations.
It has been a decade since the Sheep’s Back to Mill was updated. The Sheep’s Back to Mill publication is a record of the cost of harvesting, testing selling and shipping greasy wool in Australia to overseas mills. One of the components of this publication is the proportion of the wool clip which passes through rehandles/bulk class facilities. This article takes a look at wool preparation in the clip, which in turns determines how much wool passes through rehandling facilities.
It is safe to say Australia is facing unprecedented demand for its beef. Total Australian beef exports continue to run ahead of last year, with October exports to China almost doubling last years levels. Export beef prices are also pushing higher from the increasing demand, with new records being set on a weekly basis.
The dry spring (in many eastern regions) has kept the pressure up on adult sheep sales to abattoirs in 2019. This article takes a look at what this means for the Australian flock size in the coming year.
The sales price of your commodities is critical, but of equal importance is the price of your inputs. The highest performing businesses will have a strategy for both. In this analysis we look at global fertilizer prices as an indication of the direction that local prices should be moving.
In late October we looked at the spread behaviour between saleyard and over the hooks (OTH) prices for national lamb markets, focusing in on the general trend in price/spread movements. A keen-eyed Mecardo subscriber noted on social media that we didn’t account for agent commission or other costs in our analysis and that if we did OTH would “win easily”, but that wasn’t the focus for the October piece – it is for this one though.
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