Category: General (page 1 of 10)
This week in the livestock world we saw a major stalling of numbers coming forward with lambs taking the largest price correction of all commodities as sucker lambs in Mainland markets increase each week with contracts for new season lambs filling very quickly, albeit at excellent forward rates for the right article. Cattle have continued on a similar pricing level this week as again numbers are a struggle to find, along with mutton sheep being in strong demand and strongly sought after.
Next week’s Auctionsplus market will have some quality sheep and cattle being offered, with Thursday’s Sheep Sale offering Account Earlham Estate , 600 Flock Merino wether Lambs , vaccinated, drenched , July shorn Brooklands and Sorell Springs blood. Well grown, sound and clean to be offered in 2 lines.
Friday’s Cattle sale will see Account DJ Downie Lincoln Park 80 Angus and Angus / Hereford steers rising 12 months and 80 Angus and Angus/ Hereford Heifers rising 12 months . All cattle are Rosedale Blood and carry both Greenhams Never Ever and JBS Farm Assurance accreditation’s .
Oatlands Sheep sale Thursday 13th July 7, 2017
Ellsan Appaloosas Clearing Sale Friday 14th July 7, 2017
Also anyone looking for Winter fodder supplies, take a look at this week’s Tas Country for a full Listing of Fodder for sale
This week was the first sale of the new season, and saw over 50,000 bales rostered for sale in all three selling centres. The market opened on a softer note early, but firmed slightly as the day went on in the finer microns to close basically unchanged for the day. 21 and broader failed to regain the early losses to close 5 to 10 cents cheaper, there were similar movements in the xbreds and cardings.
Word from Australia’s largest exporter was that China were starting “to nibble” on Wednesday night, and it wouldn’t take much volume to be sold to underpin the market. High VM continues to dominate the selection, these will struggle to find support.
Everyone by now should be aware that it’s been a great selling season for finer merinos, with 18.0 micron up over 35% on 12 months ago, trading in the 95th percentile, or in the top 5% of prices of the last 10 years.
Finer xbreds, believe it or not finished up the year only marginally cheaper than a year ago with 28.0 mic down 2.5% to put some perspective around that level of 761 cents is in the 85th percentile of the last 10 years.
Unfortunately for the broad xbreds 32.0 micron are literally half the value of 18 months ago, and at 380 cents they’re languishing in the 38th percentile. Our industry mail is that this is likely to be 12 to 18 month cyclical low point for 32.0 and broader, mainly due to the excessive supply globally, and it will take 12 months at least to clear this glut.
The end of the season also marks the release of national buyer’s list for the year. Techwool finished the year head and shoulders ahead of second place with a staggering 255500 bales purchased for the season. Rough numbers work this out to be $380 million worth of wool bought. An amazing achievement for a family owned business to transact that kind of volume.
All eyes will be on next week to see what tone the market finishes on heading into the break, a strong finish will make it easier for exporters to travel and sell some volume over the recess.
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I write this week’s wool report from the airport returning from the last of the 2016/17 Tasmanian wool offerings in Melbourne.
With one selling day left in the season it is probably a little premature to look at the year that was (I will leave that up to Rob next week) but suffice it to say, for the most part it has been a good year for wool.
Merino types have now been going on what you would have to describe as a bull run for the best part of 6 months, fine crossbred types, in particular the well-bred Corriedales have recovered somewhat and are selling at acceptable levels, cardings have managed to hold on to their new higher basis, leaving really only the 30 micron and coarser crossbreds that have disappointed somewhat.
On Wednesday this week we saw the market give up the gains from last week, along with a bit extra. Most Chinese merino types were quoted 50 cents cheaper on the day with high vegetable matter and low tensile strength lots weighing heavily on the market. The European spec types were least affected, and in some cases within the Tasmanian catalogue quoted dearer on the previous week.
While the offering quality might have a little to do with the correction seen on Wednesday it is not the whole story.
On Monday afternoon of each week preceding a sale week AWEX distributes a four week forecast of the volume of wool allocated for sale in the upcoming weeks. This week we saw the forecast come out suggesting next week’s sale (the first for the new selling season) would have an increase in volume from the previous forecast only a week ago of nearly 27% or virtually 11,000 bales.
Of course I understand the reasons why this is the case, with many farmers having good income years it is pretty easy to hold over wool into the new tax year. I do however fail to understand why those brokers behind the sharp jump in volume next week were not aware (or failed to report it more likely) of this as recently as 7 days earlier.
The other question that should be asked is why dump this wool in the first week of the season? Last I checked there is 44 selling weeks in a season, not one.
The market was probably always going to be a little softer this week but we certainly don’t need poor information flow contributing to the softer tone turning what could be described as a price check into more like a price correction.
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Livestock markets around the country all followed similar trends this week with an easing in cattle prices both Prime and Store on Mainland states with Tasmania being less affected, but a glimmer of softening going forward. Lambs continued on a similar trend , softening in Victorian markets early in the week , and not recovering as the week went on , other than some spot sales on AuctionsPlus yesterday with a solid result of $147 for a line on hard prime domestic weight lambs that well and truly eclipsed the Tuesday markets in the North . Mutton still holds its line and continues to sell well with limited numbers coming forward in any of the marketing channels. One of the big impacts at present appears to be a large number of Abattoirs / Processors that are either closing or part closing for Annual Maintenance and therefore restricting the size of the killing capacity Nationally and hampering markets directly week on week . All in all, the markets are still at very respectful rates and providing great returns although a softening. On a positive note, Quoiba prime cattle market continues to buck the trend with quality cattle eclipsing National Markets with quality going into the mid 360-370 cents per kg liveweight .
Clearing sales this week have been very successful with very good clearance rates of heavy equipment. Ellsan Appaloosas will hold their Final Dispersal of Horse and saddlery equipment and small hay suitable for the equestrian scene ( Full details Tas Country or Roberts website).Friday 14th July 11am.
Lastly with the NEW BJD Biosecurity Plan coming into effect immediately , ALL breeders of Beef cattle are encouraged to complete a Biosecurity plan to enable them to access all markets going forward . More details can be found on our website robertsltd.com.au or talk to one of our agents to assist in finding the right information.
Ranelagh Sale Wed 5th July.
Quoiba Store Sale Friday 7th July.