The recent surge in the Australian dollar in comparison to the American greenback will place added pressure on our export processors as they compete in the international protein market.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
Beef processors have in recent times been able to put some black type back into their balance sheets after a sustained period of turbulent beef prices in the physical market.
At the close of trade of Wednesday, July 19, the Australian dollar was hovering around US79.2 cents rapidly closing on the 80 cents mark after a prolonged period in the range of 70 cents to 75 cents.
One would imagine that this would put downward pressure on the prices being received particularly for cows, export orc and bulls.
One rule of thumb that has always been about is that Australian feedlots struggle with high cattle prices at the same time as buoyant grain prices exist.
While long overdue for mainstream cereal grain producers, the sudden uplift in grain returns will add a tremendous burden to the feedlot industry.
In the medium term, associates west of Dubbo have suggested that grain growers have in recent weeks seen the price of some of their stored on-farm production double, and then some, in the prices available.
The column is still not sure of the actual date of the opening ceremony of the new cattle selling complex but we have been advised by a Dubbo Regional Council representative that they would hope to sell the first consignment of cattle on Thursday, August 3.
For vendors who choose to sell cattle at Dubbo, this will be a major advancement allowing for the centre to grow (which I think it will), create a bigger marketing pool and certainly give agents the opportunity to present their client’s stock to better advantage.
This in term should allow the scale staff to process the cattle more quickly.
Many agents in impromptu discussion have a range of thoughts on where the sale should now commence once the new added facilities are fully functioning.
In my opinion some of these ideas have much merit and should be discussed at length by the relevant authorities prior to council staff re-numbering our selling pens.
The column looks forward to the implementation of at least some of these innovative ideas and the day when the whole of the new complex extension is up and running.
While the writer is probably considered a global warming sceptic, the scientific evidence appears to be stacking up that, for whatever reason, the season seems to be changing and the countryside may be becoming slightly warmer.
After the last few dreadfully cold miserable days one would be hard pressed to convince anybody that the above scenario was correct.
There are very few rumours or indications the sleet and drizzle we have endured over the last few days has produced any worthwhile rain in the central west.
Dubbo agents scanned and sold 4105 cattle at the prime sale on Thursday, July 18.