Weekly Commodity Report

Report prepared 23 June 2017.

Wheat

$240/t (APW)

Steady

US futures are developing a widening spread between low, mid and high protein wheat - indicating that the market is paying a premium for protein.
Source: Rabobank

Barley

$231/t (feed)

Up 2.2%

Local weather concerns and cash prices offered above export parity indicate that the market is expecting a much smaller crop than last seasons.
Source: Lachstock Consulting

Sorghum

$264/t

Steady

Last seasons crop was revised down 10% on previous estimates, and down 38% on the previous season. Next seasons crop is forecast to rebound up 58%.
Source: ABARES

Cotton

$509/bale

Down -2.3%

The market seems to be discounting the beneficial rains in abnormally dry West Texas, although ignoring strong US Export sales predominantly to China.
Source: Namoi Cotton

Oilseeds

(Canola)

$493/t

Steady

New crop declined to near technical support levels. The Canadian conditions have improved with the majority now planted and in reasonable condition.
Source: Lachstock Consulting

Pulses

(Chickpeas)

$1090/t

Steady

Weekly old crop prices declined & new crop held steady. With the end of Ramadan this Saturday, demand is expected to increase from key markets.
Source: Agvantage

Sugar

$373/t

Down -4.6%

The floor price for sugar set by ethanol production continues to slide, as speculators sell the market. Low prices should encourage physical interest.
Source: QSL

Cattle

633c/kg (EYCI cwt)

Down -1.3%

NSW yardings were up 76% on last week impacting on all falling indicators. The prevailing dry conditions are a likely cause in the surge in supply.
Source: Mecardo

Cows

221c/kg (lwt)

Down -0.8%

Despite dry weather condition induced price decline, the medium cow price hovers persistently high at around the historical 92% percentile mark.
Source: Mecardo

Lamb

655c/kg (NTLI cwt)

Down -0.3%

Low demand due to seasonal shutdowns coincided with strong supply. Demand for restocker's fell to avoid a marketing cross over with new season lambs.
Source: Mecardo

Wool

1,583c/kg (Syd 21mc)

Up 1.9%

Wool prices strengthened again, with Merino types leading the way. The main influence on the market was low supply of only 20,000 bales offered.
Source: Australian Wool Innovation

Weather

A high pressure system promoted fine conditions over the bulk of NSW this week. A weak cold front is expected to begin to develop this weekend.
Source: BOM