Report prepared 24 February 2017.
NSW production forecast for 2016-17 is up 8% on the previous forecast. Lower prices have spurred on export demand, cal. year exports up 19% in 2016.
Source: IHS GTA / ABARES
Saudi Arabia has returned as a buyer of Australian feed barley, which should account for a large portion of 2.4 mn tonnes bought recently via tender.
Source: Ag Scientia
US plantings of sorghum are expected to make way for an increase in area to soybeans & cotton, as grains fall out of favour due to subdued prices.
Selling of long positions on the Mar futures contract sent the market lower. A large contract spread has narrowed over the past two trading sessions.
Source: Namoi Cotton
Canola futures were sold based on the USDA's forecast increase in the US soybean crop, as well as reports of strong soybean yields from Brazil.
The Indian government has announced plans to become self sufficient in pulse production by 2021, with plans to produce 24 mn tonnes domestically.
Market dynamics remain supportive for sugar prices. Despite a reduction in global output, global inventories are expected to reach very low levels.
The EYCI continued it's downward trend from the highs of late 2016. This coincides with easing of supply, a stronger AUD & heightened US competition.
Source: Meat & Livestock Australia
The market eased again this week with prices seemingly responding to drier and hotter than normal conditions, that have prevailed throughout February.
Lamb prices declined this week in response to the second highest lamb yarding's for the year. Despite the yarding's, slaughter levels have been weak.
This weeks wool auctions were relatively uneventful. All merino types remained in very high percentile bands, while the EMI reached new recent highs.
Source: Australian Wool Innovation
Synoptic patterns have prevented moisture from moving into southern areas. A slightly negative, although neutral SOI prevails for the time being.
Source: Bureau of Meteorology