Weekly Commodity Report

Report prepared 21 February 2020.

Wheat

$420/t (H2)

Down -1.2%

Optimism that key cropping regions have a close to full soil moisture profile has eased wheat prices, and rain has brought extra sales from growers.
Source: Weekly Times

Barley

$342/t (feed)

Down -1.7%

Feed barley trade with China is likely to have structural challenges with deepening China-Brazil soybean trade and the US-China trade deal.
Source: Rabobank

Sorghum

$415/t

Down -5.7%

NSW sorghum prices eased as expectations that the central Queensland and late Darling Downs crop will enter the feed grain market from June onwards.
Source: Grain Central

Cotton

$77/bale

Up 0.5%

Cotton Australia has estimated 2020 cotton production to be 600,000 bales, below 2008 levels. Analysts estimate only 24 gins will operate this season.
Source: Cotton Australia

Oilseeds

(Canola)

$640/t

Up 0.8%

Prices increased over the week to encourage grower sales based on reports of Victorian shipments requiring additional volume for export.
Source: Profarmer

Pulses

(Chickpeas)

$750/t

Steady

Lentil prices have rallied in South Australia, with pulse markets quiet in NSW and Victoria. Small harvests have limited the activity of traders.
Source: Profarmer

Sugar

$488/t

Down -0.1%

Sugar prices eased off recent highs in a volatile market. There has been a slowdown in crushing rates and Thai crop estimates have been downgraded.
Source: QSL

Cattle

702c/kg (EYCI cwt)

Up 6%

The EYCI continued its rally as competition for young cattle remained strong. Australia was the largest beef exporter in 2019 at A$10.8 billion.
Source: MLA

Cows

279c/kg (lwt)

Up 2.6%

The NSW medium cow indicator reached record levels this week. Heifers increased in most weight categories in a record large sale on AuctionsPlus.
Source: AuctionsPlus

Lamb

911c/kg (NTLI cwt)

Up 0.7%

Restocker demand has outweighed supply among lighter lambs. The trade lamb indicator reached 931c/kg cwt during the week, approaching its record high.
Source: MLA

Wool

1,779c/kg (Mel 21mc)

Up 0.3%

Higher prices across finer grades, with Chinese buyers again the largest purchaser at auction. Concerns about Covid19 has had minimal impact to date.
Source: AWI

Weather

Major climate drivers are all neutral, and are likely to remain neutral into Autumn, but hotter than average temperatures are still expected.
Source: Bureau of Meteorology