Fact of the Day – Livestock farming feeds billions and employs over 1.3 billion people. That means about 1 in 5 people on Earth work in some aspect of the livestock farming.
As we hit the middle of September, spring is starting to show what’s in store for the coming months. Although there is still low temperatures forecasted for the remainder of the month, the low thirty degree days here and there are not helping the already dry season faced across the north western parts of the state. Hurricane has definitely been the word of the month so far with the US being battered from every angle for the past fortnight. The weather events have affected most parts of the commodity market up until yesterday when the World Agricultural Supply and Demand Estimates (WASDE) were delivered. The data brought a much more improved yield estimate for global Soy Beans and Corn, though Wheat was projected to decrease more than first thought which pushed values slightly higher at the markets finish. Cotton was affected by the WASDE report with production elevated to a five year increase in yield.
The dry heat, cold frosty mornings and as well the strong windy days, we have been facing all the elements the past few weeks except for the most vital one, the WET!! With September spring rain being such a crucial element pre harvest, the market is being driven by what is expected from the crops quantity and quality wise. New crop feed Wheat for January delivered in to the Downs is up and firm at $335 with current crop for October delivery at $330/mt. Barley and Sorghum continue to be much more popular across the board with buyers in the domestic market. Feed Barley delivered Downs for 16/17 season sits strong and firm today at $320, with 17/18 crop for January delivery Downs priced at $325. Sorghum continues at just over the $300 mark for a September and October delivery period in to the Darling Downs.
As we have stated previously, harvest around the Central Queensland region has kicked off. For the time being we are yet to see any information in regards to quality and yield data, we expect that to slowly trickle out as more and more Chickpeas stumble across the many receival sites north of the border. For September in to early October, delivery for new crop prices in to Gladstone and Mackay port zones sit at $955/mt. The more southern delivery points such as the Darling Downs are priced for Oct/Nov at the $900 mark. Faba Beans are going hand in mouth with the current weather as graziers are seeking tonnage for feedlots and general paddocked stock for the continued dry period ahead. Prices are at $255-65 Ex-Farm depending location from the Plains heading north up in to the Downs, where export prices have been a lot quieter compared to previous weeks we have been seeing.
As touched on earlier, the WASDE report impacted the Cotton market through the expectations that the upcoming season would have an increased yield. Prices did take a tumble due to the world estimates but as well through the already heightened premiums seen due to the great unknown earlier this week (Hurricane Irma). These contributing factors have lanced bale prices down to $480 for 2018 cotton and 2019 cotton is twenty dollars below at around the $460 mark. The Australian dollar over the past week since our last comment has been slightly eventful with its jump north of the 81c mark for the first time in many years, but (at time of writing today) sits in the same position at $0.803.