Weekly Commodity Report

Report prepared 16 October 2020.

Wheat

$335/t (H2)

Steady

The latest USDA outlook forecasts higher wheat production, largely due to record-high yields and the second-largest crop on record in Russia.
Source: USDA

Barley

$229/t (feed)

Up 0.9%

Parts of northern NSW are ready to harvest barley, with favourable weather conditions over the next week. Old crop prices rose on short supply.
Source: Ag Scientia

Sorghum

$320/t

Steady

Ongoing dry conditions in Queensland has delayed further planting of new crop sorghum. Old crop prices are slightly higher but supplies are tight.
Source: Profarmer

Cotton

$522.5/bale

Up 2.3%

World cotton prices increased this week. Australia reportedly may lose access to China's in-quota system for cotton imports that attracts a 1% tariff.
Source: CNBC

Oilseeds

(Canola)

$598/t

Up 1%

Canola prices remained high as Western Australia harvest commenced this week. The USDA outlook forecasts lower world oilseed supply in 2020-21.
Source: Profarmer

Pulses

(Chickpeas)

$578/t

Steady

There is speculation that India's 60 per cent tariff on Australian chickpeas may be reduced due to low supply and rising prices in India.
Source: Weekly Times

Sugar

$434/t

Up 3.3%

World raw sugar prices reached a seven-month high, despite a record delivery of Brazilian sugar after the October futures contract expired.
Source: QSL

Cattle

789c/kg (EYCI)

Down -0.5%

Continued high prices and restocker activity has eased cattle slaughter across the east coast. NSW slaughter volumes are 25% below 5-year trends.
Source: Thomas Elder Markets

Cows

296c/kg (lwt)

Down -0.8%

Multiple indicators suggest the cattle herd is rebuilding. The NSW over the hook medium cow indicator at a record high, well above year-ago levels.
Source: MLA

Lamb

774c/kg (NTLI cwt)

Down -4.7%

Higher lamb yardings in NSW have eased prices this week. Central West NSW yardings were 75% higher than year ago levels for processor lambs.
Source: MLA

Wool

1,145c/kg (Mel 21mc)

Up 11.5%

Prices rose to the highest level since July with gains across all microns and a low pass-in rate. Traders were the largest buyers in all wool grades.
Source: AWI

Weather

Parts of the Riverina received heavy October rainfall over the weekend, with Narrandera receiving 26mm and wagga Wagga receiving 18mm overnight.
Source: Elders Weather