Domestic feed prices rising over export values

摘要

Domestic prices for feed grains have been showing strength recently and in the process taking domestic values over the export equivalent pricing. This is where growers and entities that trade grain futures can come unstuck. The problem occurs when futures prices, which are based on North American climatic and trade condition, fall at the same time as Australian domestic prices for the same commodity move up. The general reason for the increase in prices is a heavier than normal demand for stockfeedpellets. The extra demand is manufactured feed for use by dairy cows, for paddock reared cattle and for sheep. The demand for these supplementary feeds follows poor winter grazing conditions through much of Australia. It is only South Australia and Tasmania that have comfortable paddock feed levels ahead of sheep and cattle. This increased demand for supplementary feeds comes at a time when the sheep numbers at the 30th June were only 112 million - the lowest for 50 years. But sheep are very valuable at this time. Lambs are making high prices and the live sheep trade is making good money for farmers.