Weekly Commodity Report

Report prepared 23 May 2022.

Wheat

$480/t (H2)

Steady

Stockfeed wheat has exceeded $500/tonne in both the Melbourne and Darling Downs, as markets rallied after India announced a limit on wheat exports.
Source: Grain Central

Barley

$381/t (feed)

Up 12.4%

Barley prices have rallied alongside wheat. The malt-feed barley spread has narrowed to around $10/tonne in Melbourne, showing the high feed demand.
Source: Profarmer

Sorghum

$350/t

Up 1.4%

Limited availability of wheat and barley amid high demand has led stockfeed mills to source more sorghum, leading to higher prices for the grain.
Source: Grain Central

Cotton

$1194.6/bale

Up 1.6%

World cotton prices continued their rise, driving Australian cash prices to nearly $1000/bale, and 2023 crop prices exceeding $800/bale.
Source: Rain Ag

Oilseeds

(Canola)

$1037/t

Up 7.8%

Early crop forecasts point to increased canola plantings in NSW and Australia as growers take advantage of record prices and attractive gross margins.
Source: Australian Oilseeds Federation

Pulses

(Chickpeas)

$438/t

Up 1.2%

Chickpea markets remain quiet with only small lots traded. Lentil prices also increased, with Nugget lentils now quoted at $1000/tonne, Melbourne.
Source: Profarmer

Sugar

$629/t

Up 5.9%

Sugar prices rebounded strongly, overcoming concerns about weaker global economic conditions and early forecasts of another strong Thailand crop.
Source: QSL

Cattle

1101c/kg (EYCI)

Up 1.8%

The indicator gained ground with volatility a feature, and unusually low supply due to wet weather which impacted supply from Qld.
Source: Mecardo

Cows

349c/kg (lwt)

Down -1.1%

Heavy cattle and cows slipped due to subdued US trading conditions and high cow turnoff in the US as a result of ongoing drought.
Source: Mecardo

Lamb

806c/kg (NTLI cwt)

Up 4.1%

Weekly lamb and sheep processing volumes are back on track, running in line with the average seasonal trend for the first time since mid-April.
Source: Thomas Elder Markets

Wool

1,361c/kg (Mel 21mc)

Down -0.4%

Wool offerings begin to decline at this time of the year, however the recent increase in prices has encouraged growers who held wool to come forward.
Source: Mecardo

Weather

Australia looks likely to have both a La Nina in the Pacific Ocean and a negative Indian Ocean Dipole concurrently for the first time since 2010-11.
Source: Weatherwatch