The release of the results of the October Sheep industry survey by Meat and Livestock Australia (MLA) this week signals a tighter season anticipated into 2017 with further downward revisions noted in slaughter, production and exports for both lamb and mutton from the mid-year estimates.
The Australian government crop forecasts were released this week. The crop now has an official estimate over 32.5mmt, which although a huge rise since their previous estimates is largely in line with the middle ground of trade estimates.
Recent articles have reported wool prices to be at 17 month highs. As with all commodities prices vary across different grades of wool. This article takes a fresh look at current prices and where they sit in relation to history. Are we actually sitting at strong levels?
Recently we have been talking about how restockers and feeders are driving the young cattle market, on the back of cheap feed. Looking at our spread analysis, the discount for finished cattle, or premium for young cattle, becomes quite stark. How do we take advantage of this?
About 10 years ago I heard a grain marketing advisor say in relation to using futures or physical prices, “the basis will tell you what to do”. If we apply this to the current market, the basis is definitely saying hold canola, and sell wheat, despite prices being at the opposite end of the historical spectrum.
With the wool supply chain reported to be operating on a hand to mouth basis, with little merino stock held, changes to fresh shorn wool becomes of great interest. In this sense the market is the opposite to the conditions which existed during the aftermath of the collapse of the Reserve Price Scheme, from 1991 through to the end of the 1990s. This article takes a look at the latest AWTA wool volume data for November.
Here’s the question facing many lamb producers in South West Victoria and South East South Australia. Do I take the very good store lamb prices on offer, or do I use abundant feed and cheap grain to grow them out into a trade or heavy lamb?
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