Agwatchers+ Episode 4
Agwatchers+ Episode 4
In the fourth instalment of the AgWatchers+ podcast, Matt Dalgleish and Andrew Whitelaw discuss the state of Australia’s livestock and grain markets, focusing on cattle, sheep, and grains.
Listen to the podcast here or read the summary outlined below.
Cattle Markets: North vs South Divide
Matt Dalgleish highlights a divide between northern and southern cattle markets. While Queensland’s heavy steer price is 315 cents/kg live weight, Victoria’s sits at 355 cents. Dalgleish attributes this to supply issues, with southern buyers chasing stock from New South Wales and Queensland, pushing prices higher in the south. The AuctionsPlus Young Cattle Indicator is also rising, now at 355 cents/kg liveweight, with southern cattle fetching up to 370 cents compared to 340 cents in the north. He concludes that southern states currently have the premium on cattle.
Grain Markets: Stable but Uneventful
Andrew Whitelaw describes the grain market as “stable but dull,” trading around $315 per tonne for the upcoming harvest. Russia’s improved weather has tempered excitement, but global grain supplies remain strong. While low exporter stocks exist, importing nations have built reserves, balancing the market. Whitelaw also notes that dry conditions in NSW and Victoria haven’t significantly impacted premiums. Feed grains are abundant, with no expected supply issues for feedlot operators. He doesn’t foresee canola hitting $1,000 per tonne, explaining that falling crude oil prices reduce demand for crops like soybeans and canola.
Sheep and Lamb: Unexpected Price Rise
Dalgleish observes an unseasonal rise in sheep and lamb prices, with the National Trade Lamb Indicator up 26 cents this week, nearing 800 cents/kg carcass weight. Heavy lambs are in short supply, pushing prices higher, especially in Victoria, where lambs are fetching 812 cents/kg. However, in Western Australia, lamb prices have collapsed, running at a 41% discount compared to the east. Mutton prices in WA are similarly low, at 162 cents/kg versus 269 cents in the east.
Final Thoughts
The podcast concludes with a warning for WA sheep farmers. Dalgleish predicts ongoing volatility and low prices as the industry shrinks due to the phase-out of live sheep exports. Despite these challenges, both experts agree there are opportunities for buyers, especially in the sheep market.
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