Weekly Commodity Report

Report prepared 24 March 2017.

Wheat

$226/t (APW)

Down -1.3%

Northern and Central areas of NSW have received good falls of rain raising optimism for winter cropping. Exports to India continue to drive demand.
Source: AgScientia

Barley

$190/t (feed)

Steady

Large export volumes to Saudi Arabia supported the market, however expected large Russian crop and a stronger AUD will weigh on prices going forward.
Source: AgScientia

Sorghum

$239/t

Down -2.0%

Sorghum prices are tracking in line with a broad sell off in agricultural commodities, where funds look to increase their net short position.
Source: Lachstock Consulting

Cotton

$539/bale

Up 0.9%

A range of factors could see price pressure in future including China and Europe economic concerns, as well as likely expansion in and cotton acreage.
Source: Glencore

Oilseeds

(Canola)

$544/t

Down -1.4%

Canola prices continue to slide with the expectations of a very large South American, and in particular, expected record Brazilian soybean harvest.
Source: AgScientia

Pulses

(Chickpeas)

$840/t

Steady

Despite Indian policy and increased production, market interest has supported prices due to speculation Indian production is unlikely to meet demand.
Source: Agrimoney

Sugar

$488/t

Down -6.2%

Despite a hedge fund price correction, fundamentals are strong. Brazil reserves remain low & their mills are expected to switch to ethanol production
Source: Glencore

Cattle

622c/kg (EYCI cwt)

Up 1.8%

Widespread rainfall and storms weren’t enough to lift over-the-hook indicators this week with NSW remaining relatively steady week-on-week.
Source: Meat & Livestock Australia

Cows

221c/kg (lwt)

Up 2.7%

Greater retention of females is underpinning the recent decline in cattle slaughter numbers. Numbers slipped 20% despite male slaughter lifting 10%.
Source: Meat & Livestock Australia

Lamb

632c/kg (NTLI cwt)

Up 1.6%

Mutton prices continued to firm and climbed to near record levels this week. Limited availability appears to be the main influential market factor.
Source: Meat & Livestock Australia

Wool

1,484c/kg (clean)

Down -1.7%

Market eased slightly due to increasingly selective buyers, with the more stylish types within each micron group attracting the greatest competition.
Source: AWEX

Weather

A relatively mild temperature forecast for this week with the widespread rainfall easing back to just isolated to scattered showers and storms.
Source: Bureau of Meteorology