As harvest wraps up across much of the country all eyes point to the new season. The low cereal prices on offer this harvest has many contemplating increasing canola acreage. In this article, we look at a few of the risk factors involved with chasing prices with canola.
Meat and Livestock Australia (MLA) have hit the target with their recent cattle projections, and as such not much has changed in their January update. It is, however, worthwhile taking a look at what the peak body say is going to be the supply situation for the coming year and beyond.
The Eastern States Trade Lamb Indicator (ESTLI) has posted an impressive rise since the start of 2017 rallying over 100¢ from the 2016 close to hold above 600¢/kg cwt. Mecardo analysis released in early December pointed to the prospect of the ESTLI reaching 750¢ during the seasonal winter peak as anticipated tighter supply supports lamb prices. This analysis takes a look at the long term deflated prices for lamb to see how high lamb prices have been in the past after converting them into current dollar values.
The harvest is all but done, now is the time to start looking towards next year. There will be changes in planting, a little more of this and a little less of that. However, regardless of what you plant you will be burning diesel and spreading fertilizer. In this report, we look at these two important inputs.
There’s an old trading adage used in reference to falling markets – either those that are falling or due for a fall. Trying to predict the timing or the depth of the correction is like trying to catch a falling knife. Sometimes it’s safer strategy to let the knife hit the floor before going to pick it up. This analysis takes a look at the historic corrections in Australian cattle prices to see what kind of annual percentage losses we can expect when the correction comes.
The latest Australian Wool Production Forecasting Committee (AWPFC) flock forecast in December estimates the flock opened this season down by 3.1% on 12 months earlier. Improved seasonal conditions and high wool prices suggest sheep numbers should increase. This article takes a look at what is happening regards sheep numbers in Australia.
We are still hearing reports of processors doing it tough, but lotfeeders have been active at southern weaner sales in recent weeks, which suggests things may not be so bad for that sector. Grain prices have differed in the north and south, which means margins differ significantly for the first time in a while.
Finished lamb prices have kicked in the last week, and grain prices are in the doldrums. We have previously looked at grain-feeding lambs and it looked too expensive due to a high store lamb price, but it’s time for a revision.
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Mecardo information is provided to assist in your marketing decisions. It contains a range of data and views on the current market. It is not intended to constitute advice for a specific purpose. Before taking any action in relation to information contained within this report, you should seek advice from a qualified professional. The information is obtained from a variety of sources and neither Mecardo nor Ag Concepts Advisory will be held liable for any loss or damage whatsoever that may arise from the use of information or for any error or mis-statement contained in this report.
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