Australian cattle prices to remain robust: Rural Bank
Australia's beef cattle prices are expected to remain well above average for the first half of this year, the country's agricultural bank Rural Bank said in its 2022 Australian agriculture outlook.
Rural Bank expects Australian beef production to rise by 12pc in the first half of 2022 as cattle reach slaughter weights and herd numbers grow following a rebuild that led to a 36-year low in slaughtered cattle in 2021. The herd rebuild was required after the 2017-19 drought forced farmers to offload breeding cattle because of a lack of feed and water. This herd decline was compounded by breeder cattle lost in flooding, especially is northwest Queensland, in 2020-21.
Australian beef production is expected to reach 1.5mn t in 2022, leading to a 15pc increase in beef exports across Australia from a 36-year low in 2021. South Korean demand for Australian beef is anticipated to remain solid throughout 2022, with exports to South Korea rising by 8pc last year. Both China and Japan imported less Australian beef in 2021, although the report forecasts that beef consumption in China could rise by 4.3pc in 2022. But it remains unclear how much access Australian exporters will have to this market given the trade tensions between Beijing and Canberra.
Rural Bank expects beef production to decline globally by an estimated 4pc in 2022, largely because of softening beef production in the US caused by tighter cattle supplies putting downward pressure on slaughter rates.
High rainfall over the past two months has led to an abundance of feed in paddocks, prompting farmers to keep cattle on farm, while restocking demand continues to be strong leading into the first half of the year. Rural Bank expects cattle prices to remain stable in January-March after the last two seasons of increasing prices. The major risks to this outlook are staff shortages and abattoirs that could create supply chain uncertainty, according to market sources.
"Australian cattle prices have continued to break records on the back of improving seasons, reduced supply and increasing demand both domestically and Internationally. As a result, restocking demand is expected to remain strong and will underpin above-average cattle prices for the foreseeable future," said Mark Pain, Rural Bank's regional manager of agribusiness for Queensland and Northern Rivers, New South Wales.
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Michigan organic hens culled over bird flu
Michigan organic hens culled over bird flu
Washington, 12 April (Argus) — At least 2mn head of organic egg layers have been culled by egg producer Herbruck's Poultry Ranch in Michigan because of an outbreak of Highly Pathogenic Avian Influenza (HPAI), according to market sources. The US Department of Agriculture's Animal and Plant Health Inspection Service (USDA APHIS) has detected HPAI in Michigan poultry operations in recent weeks. APHIS data indicates that 4.076mn head of poultry were culled in Ionia County, Michigan, where Herbruck's is located, during the first two weeks of April. Argus estimates that 2mn head of organic egg layers consume about 4,500 bushels of organic corn and 63 short tons of organic soybean meal per day. Herbruck's operations are not expected to return to normal until late summer or early fall, which would lead to deliveries of organic corn and soybean meal being delayed or shifted to other buyers until mature replacement egg layers can be raised. Herbruck's did not immediately respond to a request for comment. The cullings are expected to have a sizable impact on the Michigan organic corn market, as Herbruck's is among the largest users of organic corn in the region, according to market sources. Deliveries of old crop organic corn contracts are being delayed and rolled forward to the fall 2024 new crop for delivery, the source said. With the rolling forward of old crop contracts, some new crop 2024 contracts have been canceled outright, they said. According to industry contacts, organic corn deliveries being pushed from old crop to new crop has left farmers in the region concerned about having sufficient storage space for new crop corn come harvest. As a result, organic farmers in Michigan are expressing interest in taking lower bids that previously received little interest in order to clear old crop out of their bins. The rush to sell old crop organic corn could boost liquidity in the market, especially from the sell side, and apply further bearish pressure to the market as farmers compete to clear out bin space. The Argus Corn Belt delivered spot price for feed grade organic corn fell by 4¢/bushel in the week ended April 6 to $7.25/bushel. The H5N1 variant of HPAI was discovered in the first commercial poultry flock in February 2022. In March this year, HPAI was confirmed in US dairy herds , with confirmed dairy cases in seven states as of 11 April. By Alexander Schultz Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Panama Canal to restrict May transits on work
Panama Canal to restrict May transits on work
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Brazil adds R1.4bn to farm credits in 2023-24 crop
Brazil adds R1.4bn to farm credits in 2023-24 crop
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EU to cap Ukraine agri-imports, extends quotas pause
EU to cap Ukraine agri-imports, extends quotas pause
Brussels, 9 April (Argus) — A new provisional agreement will cut a further €330mn/yr off the value of "sensitive" Ukrainian agricultural imports into the EU of poultry, eggs, sugar, oats, groats, maize and honey. But the temporary suspension of import duties and quotas on Ukrainian agricultural exports has been extended beyond 6 June for another year. The revised deal, reached by negotiators for the European Parliament and EU member states, is estimated to cut the total value of Ukrainian imports into the EU by €1.82bn/yr, a diplomat said. Parliament will have to formally approve the deal on 22-25 April, the last plenary before members break off to campaign for EU elections in June. Any difficulties in formally approving the legislation by EU states would endanger its entry into force immediately after current trade measures expire on 5 June. A previous provisional agreement reached by negotiators had to be tweaked to ensure approval by member states and parliament. The new deal confirms the emergency brake allowing for tariffs to be reimposed for "sensitive" agricultural products. And average import volumes recorded in the second half of 2021 are added to the reference period that is used as the base for triggering the emergency brake, together with relevant imports throughout 2022 and 2023. The time period for safeguard activation is also shortened from 21 to 14 days. The commission further commits to increased monitoring of grain imports, particularly wheat. Under a review process, the European Commission will study permanent tariff liberalisation for Ukraine. The commission had proposed the measures in January with the safeguard mechanism estimated as cutting the value of Ukrainian exports to the EU by €240mn/yr from an overall estimated annual value of the measures of €2.15bn. By Dafydd ab Iago Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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