Report prepared 22 September 2023.
Wheat futures rallied with crop expectations in NSW reducing quickly. With Canada also in drought, global wheat supplies are expected to tighten.
Source: Ag Scientia
Barley prices firmed as the hot and dry conditions in NSW place more crops under stress. Barley is now on par with wheat in northern markets.
Source: Grain Central
Old crop sorghum prices firmed with minimal grower selling. Sales of new crop sorghum have not begun with the ongoing dry weather a factor.
Cotton futures were weaker last week, with most agricultural commodities down after the latest US Federal Reserve decision to hold rates steady.
Canola prices rose as patchy frosts and hot, dry weather have created some challenges for southern growers in the final stages before harvest.
Source: The Land
Chickpea prices have been supported with the low Australian dollar and smaller Indian chickpea crop helping interest from Pakistan and India.
Sugar futures rose this week in line with the broader rise in soft commodities. Brazilian sugar forecasts are consistent with market expectations.
Cattle prices continued their slide with lower restocker demand and higher yardings in NSW. Restocker yearling heifers lost 20c to 156c/kg lwt.
The processor cow indicator slid with a high supply cows, up over 20% over year-ago levels, despite the 90CL indicator rising over the week.
Demand from processors have helped to support lamb prices. Premiums are going for well-finished lambs, with the heavy lamb indicator ending stronger.
The wool market eased with Sydney auctions slightly outperforming Melbourne in the 17 and 20 micron grades. Buying by Chinese top makers was subdued.
The BOM formally announced that El Niño and positive IOD events are underway. Climate models suggest that El Niño will last until February at least.
Source: Bureau of Meteorology