We’ve seen that US grain growers are planting more soybeans this year, at the expense of corn and wheat. Last week Statistic Canada released their March report on the sowing intentions of principal field crops, and the swing towards oilseeds has hit there too. Higher canola areas in Canada has direct implications on Australian Canola prices.
Last week we had a look at Meat and Livestock Australia’s (MLA) sheep industry projections, and what they might mean for lamb markets. The results were reasonably bullish for prices. This week we put the ruler over the sheep projections, and again the results suggests sheep are going to be ‘expensive’ for a while yet.
High prices are always welcome at the farm gate for commodities being sold. However do high prices correlate with a growing industry? Mecardo takes a brief look across the major extensive commodities grown on Australian farms (and a couple of intensive ones as well) from the perspective of gross revenues (volume by price) rather than simply price.
During a favourable season optimism runs high among restockers and opportunistic cattle traders supporting demand and prices for store/young cattle. The added buying competition between the three main purchasing groups (restockers, lot feeders and processors) will often see the Eastern Young Cattle Indicator (EYCI) outperform the price patterns for finished lines, as there is really only one buyer type for fat cattle – the processor. This piece will take a look at what can be expected for the spread pattern between heavy steers and the EYCI along the East coast for the next six months.
A question about price patterns in the wool market following Easter has been asked of Mecardo. This article takes a quick look at price movements leading up to and following Easter during the past 16 years.
Meat and Livestock Australia are advising ‘cautious optimism’ regarding lamb and sheep prices for the coming two to three years. The record lamb slaughter levels of the last three years, combined with drought and strong sheep slaughter, has come home to roost, and MLA believe we’re going to see three years of weaker lamb supply, propping up prices.
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