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Lamb prices lift as supply concerns mount 21 Nov 08
Lamb prices rose 'significantly' in saleyards this week, according to Meat and livestock Australia, reflecting a 5pc fall in yardings from last week's and mounting concerns over a lamb shortage in the next few months.
While lamb supply at present is similar to that of the same time last year, turnoff is expected to fall below a year ago soon.
MLA says this reflects lower numbers on-farm and affordable options for producers to feed lambs through summer, an option which was not available last year.
The falling $A continues to have the 'perverse effect' of lowering export demand and grown cattle prices, as buyers concentrate on clearing stocks purchased earlier (at higher prices) and wait for the fall in the $A to end.
This has been particularly evident for the beef trade to Russia and Korea, made worse by importers having difficulty in obtaining credit and concerns over demand.
The same was also noted for live sheep exports to the Middle East this week, the MLA says, with buyers adopting a ‘hand-to-mouth’ trading approach.
This phenomena is less evident for meat sales to the US and Japan and for live cattle and lamb exports.
The low $A is expected to boost export sales and meat and livestock prices, once the current financial and economic instability abates and the $A stabilises. By early 2009, buyers in our main markets will likely need to re-enter the market to replenish stocks, sparking some flow through of the A$ benefit, the MLA says. (Stock & Land)
SA farmers store grain to wait out bad prices 21 Nov 08
Low grain prices are forcing farmers in South Australia to warehouse their grain until the market improves.
An oversupply of feed barley domestically , the global financial crisis and a good harvest in the Ukraine and Russia are the reasons being blamed for the price falls for feed barley and wheat.
Farmers say these prices combined with high input costs will see them struggle to make a profit.
Tony Parker from Wharminda on Eyre Peninsula.
"I'm sitting on the harvester and I notice Incitec Pivot announced a $600 million profit, up almost 200 per cent , AWB announced a $60 million profit, just seems to me, everybody that supplies us or we market our grain to are making good profits," he says.
"I'm not making a profit."
Richard Way from Port Vincent is taking the 'wait and see' approach hoping the market will improve.
" I just received an SMS from my grain marketer and feed barley has just dropped $10 dollars a tonne, so there's no great incentive to sell at these low and dropping prices."
Steve from Loxton in the Riverland.
"There's no way there's going to have any young farmers left in South Australia if we continue to have prices this low, it seems ABB and AWB make big profits and the farmer makes nothing anymore." (ABC)
Horror grain season continues in Victoria 20 Nov 08
The horror season for Victorian grain growers continues to get worse.
After praying for rain for months the rain has finally arrived, but it's too late and is damaging some crops.
Agronomist Dale Grey says many crops will be downgraded because of rain damage
"It's going to start swelling up and it's going to start wanting to germinate," he says.
"When that happens it either starts sending it's root out of the seed while it's still in the head."
"Then starts turning it's ezymes on to turn to start turning the starch in the grain into sugar and that totally makes the grain unsuitable for baking."
"Once that happens it renders it for feed quality." (ABC Rural)
Animals Australia accuses MLA & LiveCorp of deceiving farmers 20 Nov 08
Claims and counter claims of deception are flying between Animals Australia, MLA and LiveCorp over why Bahrain's livestock importer has decided to ban the transport of Australian sheep in car boots during the pending Eid - Festival of Sacrifice.
The Bahrain Livestock Company (BLC) yesterday announced it would be forcing individual purchasers of sheep from its feedlots to use trucks to transport stock, instead of cars.
Animals Australia claims MLA and Livecorp have portrayed the decision as a good news story resulting from their presence in the Middle East region.
But Animals Australia says Gulf News, Bahrain's major newspaper, in reporting the BLC decision stated: "The move comes after criticism about the handling of animals in Bahrain and several other Gulf countries by organisations such as the US-based People for the Ethical Treatment of Animals (Peta) and Animals Australia."
In contrast LiveCorp and MLA say they have a strong relationship with BLC and have worked with them to develop this initiative.
"The livestock export industry has people on the ground working each day with the feedlots, importers and government, making improvements and working with them to develop new initiatives that actually improve animal welfare," LiveCorp chief executive Cameron Hall said.
"We've worked closely with BLC and this initiative is a great example of how collaboration and incremental change can have positive outcomes.
"It's a bit rich for an activist group to lay claim to this achievement when they're not in Bahrain each day actively working to improve animal welfare."
However, during last year's Eid Festival, Animals Australia says its investigators filmed Australian sheep being trussed and shoved into boots and tossed onto trucks at the BLC feedlot.
It says recent airing of this footage on national television outraged Australians and increased calls for the live export trade to end.
Glenys Oogjes, executive director of Animals Australia said today: "Meat and Livestock Australia has tried desperately to convince Australian farmers and the public that they need to continue to export animals to be able to improve welfare in the Middle East.
"It is the fear of losing access to Australian animals, not the provision of them, that has forced the introduction of these regulations in Bahrain.
"It is no coincidence that this decision by the Bahrain Livestock Company comes after footage of cruel treatment at their facility aired nationally in Australia.
"Animals Australia's investigations have forced this ban, one that MLA has been unable to achieve despite being based in Bahrain for over a decade." (Stock & Land)
Rains drive AWB profit boost 19 Nov 08
Wheat exporter AWB says good rains have boosted grain and livestock production, more than doubling after tax profit for 2008.
Net profit increased 137 per cent to just over $64 million, driven by record sales of farm merchandise and fertiliser.
The result is AWB's first annual earnings report since the Government introduced new wheat export marketing arrangements allowing multiple sellers.
Investors will get a final dividend of 9 cents a share, fully franked. (ABC News)
AWB details 2008 harvest finance offering 18 Nov 08
AWB Limited has announced its 2008 season Nominated Estimated Pool Returns (NEPRs) for those growers who intend to utilise AWB's Pool Payment and Finance products for the current wheat harvest.
AWB's general manager of Australian commodities, Stuart Richardson, also announced product lending percentages and first advance levels as part of AWB's declaration of its NEPRs, which form the basis for AWB's underwritten loans and payments.
"Our pool payment and finance products are fully underwritten and we offer a range of options, so we continue to offer growers great value with security and flexibility, all of which are important," Mr Richardson said.
"Due to the volatile nature of the wheat market we have made some changes to our harvest finance offering for the 2008 season, including combining AWB Harvest Loan and AWB Flexible Drawdown Loan into one simple product called AWB Loan and adjusting our underwriting fee to $1.90 per tonne.
"It is important to remember that the payments we are offering though our finance products will be topped up as the season progresses.
"Our intention is to progressively raise the levels and 'top-up' earlier payments as sales prices and hedging benchmarks for AWB Pools are achieved."
Mr Richardson says growers who use AWB's Pool Incentive Contract will receive a higher harvest cashflow as the $10 premium will be incorporated when calculating loans and payments.
"Clients have the flexibility to select from AWB’s payment options as they progress through harvest load by load, with the ability to use a single option or combine payment options to suit their needs," Mr Richardson said.
The nature and timing of payment will vary according to the options the client selects.
Meanwhile, AWB has widened the spread between the premium APW milling wheat grade and ASW for its 2008/09 Eastern and Western Wheat Pools.
All other grades remain unchanged.
The benchmark APW grade has increased $1 per tonne and now stands at $327/t FOB in the AWB Eastern Pool and $324/t in the AWB Western Pool.
ASW has fallen $4/t in both pools, to $307/t in the Eastern Pool and $304/t in the Western Pool. (Stock & Land)
Fonterra warns of volatility in global dairy markets 18 Nov 08
The world's biggest dairy trader, Fonterra Co-operative Group, warned today of more volatility looming in global dairy prices.
"It is clear that 2007-2008 has fundamentally changed market dynamics and volatility is more likely to be the norm, rather than the exception, in the medium term," said the cooperative's chairman, Henry van der Heyden.
"With global financial confidence tenuous at best and the inevitable lag between price signals guiding farmer decisions around production, there is every possibility of an imbalance between demand and supply influencing prices."
In an annual review just sent to shareholders, Mr van der Heyden said market unpredictability, rising costs, a high exchange rate for the New Zealand dollar, and financial turmoil made the business environment "challenging" in the 14 months to July 31.
Average dairy prices achieved by the cooperative during the 14 months were $US4350 ($NZ7899) a tonne, up 62.7 percent on $US2673 a tonne in the previous 12 month period.
International milkpowder prices peaked at around $US5000/tonne in late 2007 but more recently have fallen back to around $US2600 a tonne.
But Mr van der Heyden noted that despite the volatile conditions, Fonterra achieved its best-ever financial result in 2007/08, generating $9.3 billion for farmer shareholders. (NZPA)
Rice, sheep and lamb numbers drop to lowest levels since 1920s 18 Nov 08
Continuing unfavourable conditions and a lack of water kept Australian agricultural production down during 2007-08, according to figures released by the Australian Bureau of Statistics. With laws of supply and demand dictating prices, it does not bode well for some food prices, though there were some favourable figures.
Rice plantings dropped to the lowest levels since 1927 - from 20,000 hectares in 2006-07 to 3,000 hectares in 2007-08 - while production was down 86% to 23,000 tonnes. Rice has been one of the few food commodities that has not retreated greatly from highs despite the softening of food commodity prices. The price is still 78% higher than October 2007, after prices skyrocketed late last year and in the early months of this year on supply concerns - this was heightened after export restrictions were put in place by some rice producing countries.
Sheep and lamb numbers - at 79 million head were also at their lowest levels since the 1920s, but plantings of grain sorghum came in at a record high of one million hectares, leading to a tripling in production to 4 million tonnes. (ABS)
Nervous demand hits lamb market 17 Nov 08
Australian lamb producers will be looking for a new-year reprieve in demand with exports during October dropping by 9 per cent year-on-year, to 16,131 tonnes swt.
Meat and Livestock Australia signal sluggish demand in the US, China and Mexico as key contributors.
The fall comes on the back of a 6pc drop in exports for the October calendar year, at 123,185 tonnes swt.
In the United States, tight supplies of Australian heavy lambs, coupled with the countries’ economic downturn continued to dampen lamb exports with shipments back 15pc year-on-year, to 4,560 tonnes swt.
These factors combined with exchange rate fluctuations during the year, saw exports to the US in the calendar year to October fall 21pc year-on-year, to 29,425 tonnes swt.
Demand for Australian lamb in China eased during the month, with exports falling 24pc year-on-year, to 1,434 tonnes swt, while volatility in the Mexican peso over recent months saw shipments to Mexico plummet six fold, to 190 tonnes swt.
Strong demand in the EU and Middle East was insufficient to offset the lower shipments to other markets during October. Exports to the EU jumped 41pc year-on-year, to 2,323 tonnes swt, while shipments to the Middle East rose 14pc, to 2,498 tonnes swt. (MLA)
Barley scrapes bottom 17 Nov 08
The headers have fired up, with barley once again the first cab off the harvest rank. And thanks to the drought, there is speculation that quality has reached a new low on some farms.
While Feed 1 is the best quality stockfeed barley, new lesser quality grades have been introduced over the years, as Feeds 2, 3 and 4.
But even these are not enough, according to one Wimmera agronomist.
"We need a new category - Crap 5," he said. (Weekly Times)
Wheat prices may rally sharply in 2009 13 Nov 08
Global wheat prices have steadied in recent weeks after a savage two-month slide, but the preconditions are in place to underpin a rally early in 2009, and if production doesn't meet high expectations it could be a very sharp rally.
Against a backdrop of a general decline in the value of all asset classes, wheat prices slumped as the market focused on a sharp increase in global wheat production, with the US Department of Agriculture on Monday estimating a 12 per cent on year increase in output in 2008-09 to a record 682 million tonnes.
But the market may have overlooked "the missing salient fact" that demand is continuing to grow because the global population is expanding, says Mark Martin, a risk management adviser and director at Australian commodity manager MarketAg.
USDA estimates demand for wheat will grow 6.2 per cent on year in 2008-09 to 657 million tonnes.
"With that growing demand and tight stocks, it wouldn't take too much for a production hiccup to cause an explosion in prices," Mr Martin told Dow Jones Newswires.
Australia's most active wheat futures contract - ASX January - settled yesterday at $268 a tonne. That's up from a low of $258 late October but still well below a recent high of $392 on August 21 and a still higher peak of almost $450 in late February.
"If we have a serious weather problem, or a scare...you'd see a $200 lift in these prices," Mr Martin said.
He isn't alone in seeing a solid floor in place for wheat prices.
In analysing the USDA estimates, Merrill Lynch said that despite expectations of higher output of wheat, soy and corn in 2008-09, inventories are projected to remain at low levels.
The United Nation's Food & Agriculture Organisation warned in its biannual Food Outlook report that a prolonged financial crisis could adversely affect plantings of various crops globally and potentially lead to an even more severe price hike in farm commodities next year than was seen earlier this year.
MarketAg's Mr Martin said that wheat is one of a number of agricultural commodities whose charts suggest prices are forming a base. After hitting its $258 low on October 23, ASX January wheat traded up to $285 on October 28 and this month traded in a range of $260-$275.
As for the future of prices, "you'd have to say there's 10 per cent to 20 per cent risk to the downside and an 80 per cent to 90 per cent risk to the upside," Mr Martin said.
Richard Koch, managing director of Perth-based marketing advisory service Profarmer Australia, is more circumspect, in part reflecting a rebuilding of global wheat stocks, saying "the upside potential outweighs the downside."
"The best chance we have for a recovery in wheat prices is for Black Sea selling to reduce, that's been the overwhelming influence on grain markets in the past couple of months," he said today.
Until outside markets show signs of stabilising, it's hard to make a case for grain prices to push too far away from where they are now, he said.
That said, probably early next year in the northern hemisphere spring, the battle for acres between competing grains should underpin a recovery in prices, but these likely won't "blow off the charts" so much as just grind higher, Mr Koch said. (The Australian)
Dairy farmers vote to sell co-op to National Foods 13 Nov 08
Farmers have voted overwhelmingly in support of National Foods' acquisition of Australian Co-operative Foods Limited, better known as Dairy Farmers.
Japanese-owned National Foods will pay $5.65 a share to some 2000 Dairy Farmers' members.
It's the end of an era for the century-old Australian co-op that boasts household brand names like Cracker Barrel, Coon and Ski.
Dairy Farmers' chairman Ian Langdon says while the take-over still requires a final court hearing, it's pretty much a done deal.
"The yes vote was 96.3 per cent of all those farmers who voted, and more than 88 per cent of eligible members actually submitted their ballots." (ABC Rural)
Australia's Dairy Farmers approves National Foods bid 13 Nov 08
Australia's Dairy Farmers milk co-operative said on Thursday shareholders approved a A$910 million ($580 million) takeover bid by National Foods, an Australian unit of Japanese brewer Kirin Holdings (2503.T: Quote, Profile, Research, Stock Buzz).
The A$5.65 a share offer needed approval by 75 percent of the shareholders and the vote was 96.3 percent in favour.
Dairy Farmers is Australia's top milk manufacturer and second-ranked cheese maker. (Reuters)
China buying 1.5m tonnes of domestic soybeans 13 Nov 08
China is buying at least 1.5 million tonnes of soybeans from local farmers, boosting rural incomes after much of the main producing region's harvest went unsold, two executives at state-owned companies said.
While the state reserve has already procured about 500,000 tonnes, other buyers and local crushers have imported cheaper soybeans, said the executives, who declined to be named as reserve actions are considered a state secret.
The 1.5 million tons, worth 5.6 billion yuan (HK$6.26 billion), represents about 9 percent of the domestic crop.
Further purchases may boost China's imports as the reserve absorbs domestic supply. (Bloomberg)
How will Obama affect global agriculture? 12 Nov 08
By any honest measure, the election of Barack Obama as the next President is an epic in the American experience, but the tale is just beginning, and farmers around the world have no idea how it will end.
Will his Administration derail the trade deals so necessary for agricultural exports?
Will new environmental regulations prove so burdensome that US farmers will look across our borders for new lands?
Will Obama prove to be the left-leaning liberal his opponents portrayed?
There is a chance that he will veer toward the centre and build an action-based coalition in Congress, with moderates of both parties working to actually solve problems. Legislative stalemates could end under that scenario, empowering Obama's mantra: Yes we can.
One clue may be Obama's appointment of Rahm Emanuel as his chief of staff. Emanuel, the House Democratic Caucus chair and top fund-raiser, was known as a free trader in his previous role as White House aide in the Clinton Administration.
His current role in Congress makes him aware of the dynamics that will play out in the new Democratic majority between the party's liberals and the moderates, such as the Blue Dog Democrats, a powerful group that is fiscally conservative and pragmatic on policy issues.
Before the election, the Blue Dogs - which include many with interests in agriculture, like House Agriculture Committee chairman Collin Peterson - were a major voting block of 47 members, about 20pc of House Democrats.
It's not yet clear if they have increased their power base, but the Blue Dogs will certainly be a factor neither the Obama White House nor House Speaker Nancy Pelosi will want to ignore.
National Farmers Union president Tom Buis, an Obama supporter and one of Washington's most influential on farm policy, shied away from attempts to label Obama as a liberal, which he called "campaign rhetoric".
On a teleconference the morning following the election, Buis said: "If you look at the election results, Barack Obama won by addressing the forgotten middle."
Buis said he has had no hint from Obama that he intends to put any farmer out of business. Quite the contrary: "He has a rural vision."
The nation's two major general farm organisations were quick to support Obama's victory.
Buis said the time is ripe to call a national agricultural summit. Recalling a similar event in the late 1990s that created a national conversation for production agriculture, Buis said he planned to seek support for another such event in the prelude to the Obama Administration.
On the key issue of trade, Buis supports Obama's call to include labor and environmental standards in US trade agreements.
Buis said he believes recent problems with food imports also make an argument for including health and safety standards.
Obama's first priorities will be "the economy, the economy, the economy", Buis told reporters, predicting that the new Administration will quickly address the continuation of farm bill implementation - "as intended by Congress" - in the face of rising input costs and falling commodity prices.
Reforming commodity futures market regulation will also be an early goal for the new Administration, Buis said, and Obama will continue to support renewable energy, including a commitment to ethanol, wind and solar energy.
American Farm Bureau Federation president Bob Stallman immediately issued a statement congratulating Obama and the members who will serve in the 111th Congress on a "decisive and historic election".
"We know there are many points of view on these issues, but we also know that our elected leaders have one thing in common: Each person elected to office ran for office to improve this country," Stallman said.
National Cattlemen's Beef Assn. (NCBA) president Andy Groseta, whose organisation endorsed President George Bush in the 2004 election but did not endorse a candidate this year, immediately congratulated Obama.
Policy on government support for ethanol subsidies may be one of the thorniest for Obama, who hails from Illinois, a major Corn Belt state. The Renewable Fuels Assn. and National Corn Growers Assn. praised his election. (Stock & Land)
Start of harvest shows promise 12 Nov 08
Ready, set, harvest!
The first canola crop of the season has been delivered into a silo in NSW. Harvest results are promising this year despite the very dry season.
Parkes farmer Graham Barron delivered his first GM canola crop this week and is impressed by the results and with the supply chain processes.
“There was no problem delivering the grain into the silo site and everyone knew what to do with the GM canola. It’s a very secure system right through the supply chain.”
While still too early for final results he said the crop has held up well.
“I’m pleased with the yield despite the abnormally dry conditions. In comparison the Roundup Ready canola from NuSeed has performed better than the conventional canola I grew this year.”
Mr Barron plans to plant more GM canola next year.
“This will become the norm for us rather than the exception.”
Local grain merchant Michael White is expecting top yeilds and good oil.
“We expect to be busy since pricing is holding quite well and there are a lot fewer receiving sites this year. We plan to open the silos on Monday at 8am, weather permitting.”
With this year being predicted as one of the most successful years yet, there is a warning to those who overload their vehicles.
“And a reminder not to overload as the RTA will be on patrol. But we do expect to fill, then truck out, and refill the silos again.” (Wellington Times)
Grain prices give up gains after USDA report 11 Nov 08
Grain prices gave up some of their earlier gains Monday after a government report forecast a decline in corn and soybean production this year.
Agriculture futures rose in early trading on the Chicago Board of Trade in response to a $586 billion stimulus package in China, said Jason Ward, a market analyst at Northstar Commodity in Minneapolis. China's plans to boost its economy through a mix of spending, subsidies, looser credit policies and tax cuts also sparked rallies in Asian and European markets.
But a report from the Agriculture Department deflated some of investors' enthusiasm, Ward said.
The USDA lowered its forecasts for this year's U.S. corn and soybean harvests, with corn production now expected to come in below analysts' estimates.
The department said corn production is expected to be 12.02 billion bushels, down from last month's revised estimate of 12.03 billion and below analysts' estimates of 12.08 billion. Corn yield per acre is expected to come in at 153.8 bushels, down from last month's estimate of 153.9.
The soybean harvest is forecast to be 2.92 billion bushels, down from 2.94 billion, according to the USDA's November report. The new projection matched analysts' estimates.
Soybean yield per acre is expected to be 39.3 bushels, down from 39.5 last month.
Corn for December delivery fell 1.25 cents to $3.7425 a bushel in afternoon trading, after rising as high as $3.85 earlier in the session. January soybeans fell 1.5 cents to $9.195 a bushel, while December wheat futures fell 15 cents to 5.06 a bushel, after rising as high as $5.31 a bushel earlier in the session. (Associated Press)
Queensland takes over leadership of Cattle Council 11 Nov 08
The new president of the Cattle Council of Australia says the industry could be seriously disadvantaged by the proposed emissions trading scheme.
Greg Brown, a Brahman producer from Mount Garnett in far north Queensland, has taken over the job from Victorian Bill Bray.
Mr Brown says he's been elected at a time the beef industry is facing some big challenges, including the global financial downturn and the looming Carbon Pollution Reduction Scheme.
"We're potentially going to be seriously disadvantaged by the whole carbon issue and it is something that we've got to be very proactive on," he says.
"I think we've got to be very defensive about the likelihood of what we're going to have to pay for and I see that as a major issue for agriculture." (ABC Rural)
Dairy prices tipped to fall 11 Nov 08
Economic downturn and unstable currency rates will push dairy prices down this year.
Europe is already building up stockpiles of dairy products, and that's driving down prices.
Tim Hunt, from Rabobank, says this will affect prices here in Australia.
"You live by the sword, you die by the sword, and Australian dairy exporters have earnt well on the back of a record period of income growth," he says.
"That situation is changing somewhat.
"I'd expect prices to end up somewhere in the region of 10 to 12 per cent lower this year, compared to the closing price of last year." (ABC Rural)
Beef, sheep shake-up 10 Nov 08
Heavyweights from the beef and sheepmeat industries will gather for their annual shake-up at Orange, in NSW, from today.
Presidents of both the Cattle Council of Australia and Sheepmeat Council of Australia are stepping down to make way for newly elected leaders at both groups' annual general meetings next Monday and Tuesday.
Victorian cattle producer Bill Bray will step down from the CCA, as will NSW sheep producer Chris Groves, from SCA.
This week is a big one for the livestock industries, as Meat and Livestock Australia will also hold its AGM in Orange on Thursday.
MLA members will vote on seven resolutions at the AGM.
Three involve the election of MLA board directors, three involve the election of livestock producer representatives to the MLA board selection committee and one involves a proposed increase to the aggregate limit for MLA board director's fees.
MLA board directors Don Heatley (chairman) and Peter Boyden will seek re-election to the MLA board. First-time nominee Grant Burbidge is also standing for election.
The livestock producer nominees for the MLA board selection committee are Queensland sheep producer Kerry Corish, NSW cattle lotfeeder Warren Barnett and Queensland cattle producer Robert Green. (Weekly Times)
WA wheat prices could rise 10 Nov 08
Wheat prices in Western Australia could rise in coming weeks and months, according to WAFarmers WheatPool, which is managed by Emerald Group Australia.
The statement announced an increase in WAFarmers WheatPool estimated return on benchmark Australian Premium White grade wheat of 10.5 per cent protein by A$7 to A$327 a metric ton gross.
The increase reflected active marketing efforts, relative weakness in the Australian currency and renewed signs of improved demand leading to a partial recovery in global commodity prices, the statement issued late Friday said.
"We remain confident that as we move into the Australian harvest, we will see demand stimulated which will further bring pricing opportunities to the WAFarmers WheatPool program," according to the statement. (Weekly Times)
West Australian Crop Forecast Raised After Rainfall Last Month 6 Nov 08
Western Australia, the nation's largest wheat grower, may produce more crops than previously forecast after heavy rainfall at the end of last month.
Total production of all grains may be 11.3 million metric tons, the state Department of Agriculture and Food said in a report on its Web site. That compare's to the 10.9 million ton estimate a month earlier.
The state's wheat output may be 7 million tons, barley production may be 2.5 million tons and canola 912,601 tons, it said. Harvesting has begun, it said. (Bloomberg)
Esperance harvest quality expected to be high 6 Nov 08
Western Australia's grain handler says the quality of the Esperance harvest should remain high as long as it does not rain over the next few days.
Co-operative Bulk Handling (CBH) has received its first truck loads of canola this week and expects another 500 tonnes today.
CBH's Mick Daw says a dry seeding and a wet finish has seen the harvest start earlier than last year, but still within the normal harvest window.
"Given the early start we've had in the last couple of years it's probably about four weeks later than what we have experienced. However, it's probably traditional for us to start in early November if you look back over the last 10 or 15 years," he said. (ABC News)
Wheat crop forecast slashed 5 Nov 08
The Federal Government has cut its forecast for this year's wheat crop, citing a lack of spring rain across south-eastern Australia.
The wheat crop forecast has been cut by 11.4 per cent to 19.91 million tonnes.
The revised forecast by the Australian Bureau of Agricultural and Resource Economics (ABARE) brings it into line with other forecasts by private consultants.
Drought last year reduced the wheat crop to 13.03 million tonnes. (ABC News)
Bad weather damages WA barley crop 5 Nov 08
Western Australian barley growers face losing millions as rain and frost combine to spoil their crops.
Recent rains have caused discolouration, which make the barley unsuitable for malting, and drop it into the much lower paying feed category, while a bad frost in October has caused extensive crown and stem rot.
Juliet MacDonald, from grain marketer Graincorp, says growers are very disappointed with the results after a season which, until recently, looked so promising .
"Last year it wouldn't have mattered, because the spread from malt to feed was potentially not so damaging to their pockets," she says.
"This year, the spread from malt to seed is up to $80 to $100 at times, is extremely hurting to growers at the pointy end of the season, trying to make the money." (ABC Rural)
Online grain trading on the way 5 Nov 08
For the first time growers will be able to trade and sell their grain online in a new system set up for this harvest.
Clear Commodities says their system is similar to the sharemarket, where growers put in an amount of grain at a certain price and then companies can buy that grain.
The company says the web-based system has been set up because of the deregulation of the single desk for wheat exports.
Jamie Smith, from the South Australian Farmers Federation, says it serves as a marketing alternative for growers.
"What this'll do is it actually is one of the tools that will allow growers to help them have choice and be able to follow the market and choose when they want to sell."
Some small grain companies are sceptical of the system, saying the high buyer fee and the five-day payment period are unreasonable.
Dry weather cuts harvest in SA 4 Nov 08
Lack of spring rain has cut crop forecasts for harvests in South Australia.
The state's Primary Industries Department estimates production at 4.74 million tonnes, which is less than last year, and a significant downgrade from August's estimate of 6.49 million tonnes.
The department says there are widespread reports of less wheat and barley being delivered this harvest, and pulse and canola crops will be badly affected by the harsh finish to the season. (ABC Rural)
Push for better dairy prices in northern NSW 4 Nov 08
A dairy specialist says farmers need incentives to produce more milk, to meet a growing shortage.
The ANZ's Graham Ferrier has told the New South Wales dairy industry that companies must pay a price that will attract and ensure adequate milk supply.
Low prices, difficult seasons and population pressure have all resulted in a contraction in milk supplies along the state's north coast.
But Mr Ferrier says the outlook now for dairy farming there is excellent.
"There's an increasing shortage of milk on the north coast and south-east Queensland, there's a growing population, people want fresh product, and the only way to produce it is to have the farmers and make sure there's enough incentive there for them to produce that milk." (ABC Rural)
Falling shipping costs will help grain exports 3 Nov 08
Grain growers exporting their crops will be saving more than $50 per tonne this year because of drastically reduced demand for shipping.
The Baltic Dry Index, which measures shipping costs for commodities, is at its lowest level in six years, dropping 93 per cent in just two months.
David Ginns, from GrainCorp, says that's money going straight into the grower's pocket.
"The bottom line for growers is that the reduction in freight is helping us to become more competitive and that's a good thing," he says.
"All we need now is for the gods to smile upon us and allow us to have a good exportable cereal surplus out of the eastern states this year, which will be different from the last two years." (ABC Rural)
Forecasts of bumper canola harvest 3 Nov 08
There are predictions this season's canola harvest in central western New South Wales will be the best since 2005.
The Department of Primary Industries says the area of land planted in the crop is down 20,000 hectares on last year.
But Don McCaffery from the department says about 114,000 tonnes of canola is expected to be harvested.
He says last year's yield was just 18,000 tonnes.
"We've had a better rainfall pattern this year than last year," he said.
"Spring has only been moderate, but it's been better in the eastern areas of the central west."
Mr McCaffery says it is expected to be the region's largest harvest since 2005.
"We had a bad start to that season, but we had a good finish," he said.
"But this season's not going to be a good season for everybody. There's still lots of areas of the state that are still not going to harvest a profitable crop." (ABC News)
Riverina rain saves wheat crops 3 Nov 08
Welcome rain has fallen across the NSW Riverina overnight.
Up to 32 mm is enough to save some moisture-stressed wheat crops around the east of the region.
Even some of the dry southern districts found water in the gauge, with farmers around Jerilderie receiving up to 13 mm - their best rain for the spring.
While it's too late to save many southern crops, the rain will green up grazing paddocks and give farmers another week before they're forced to send stock away on agistment.
Crops are already being stripped in the north of the region, though, and the rain is more of a hindrance than a help around areas like Rankin's Springs. (ABC Rural)
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