Processor margins have increased dramatically in this last quarter, sitting significantly higher than historical averages. The large margins have been linked with the low rainfall patterns that have occurred this year. Similar conditions were seen 2013 and if that is anything to go on, the Mecardo theoretical cut-out model is projecting firmer processor annual margins, like that which were seen during 2013-15.
We’ve fielded some queries this week as to when sucker lambs might hit the market. One option is to lot-feed lambs to get them finished quickly. This week we crunch the numbers on feeding lambs and see if there is money in it, or if there might be under a few different scenarios.
The call for fodder has pulled back in some regions, but still remains high throughout the country. Small bales and compressed eco bales keep the hobby farmer market going and there is a real shortage right now.
Grain as a commodity is a replaceable product. This is especially true when it comes to feeding animals, when one commodity becomes too expensive – it will be replaced with another. Wheat and corn can both be used as a substitute. In this article we look at corn and wheat to determine the value of feeding wheat.
In our weekly comment last week we noted how the Eastern Young Cattle Indicator (EYCI) yardings reached a 14 month high, yet the price of the EYCI held above 500¢. We’ve had a few queries around where the demand came from, and it’s a bit of a surprise to us.
Earlier this week we took a look at the usual supply of new season lambs out of NSW, and how this might change this year. Since then we’ve had a related query on how the expected increased supply of store lambs out of NSW might impact prices and whether Merinos normally sold as store lambs might be better off finished and on the hook. The answer, as always, is it depends on rainfall, but we’ll run some possible scenarios.
The vast majority of Australian wool is processed in China and a sizeable proportion of Australian wool is reported to be consumed in China. This has prompted a reader to ask, how wool prices appear in Chinese Renminbi (RMB) terms.
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