Reports » Australian Weekly ABARES Report » Australian Weekly ABARES Report - 7 August 2014
Australian Weekly ABARES Report - 7 August 2014
Summary of key issues
During the past week rainfall in excess of 15 millimetres was recorded in Tasmania, most of Victoria, south-eastern South Australia, southern and north-eastern New South Wales, and the Queensland north tropical coast.
July 2014 rainfall was generally below average for large parts of eastern Australia and part of western and central Australia and average or above average for other regions.
Relative soil moisture levels for July 2014 are predominately average to above average across much of the southern cropping zone, while significant soil moisture deficiencies are evident for much of Queensland, northern New South Wales and northern Western Australia.
Long-term (22-month) rainfall deficiencies have increased in Western Australia, Queensland, New South Wales, South Australia and the Northern Territory compared with the previous drought statement released by the Bureau of Meteorology.
Water storage levels in the Murray–Darling Basin increased by 223 gigalitres (GL) this week and are at 65 per cent of total capacity.
The world wheat indicator price (US No. 2 hard red winter, free on board Gulf ports) averaged US$290 a tonne in the week ending 5 August 2014, compared with US$285 in the previous week.
The Queensland young cattle indictor price (330 – 400 kg live weight C3) averaged 338 cents a kilogram in the week ending 1 August 2014, around 4 per cent higher than the previous week. Over the same period, the young cattle price increased by around 6 per cent in South Australia to average 343 cents a kilogram. In contrast, young cattle prices fell by around 2 per cent in both New South Wales and Victoria to average 366 cents a kilogram and 361 cents a kilogram, respectively.
The saleyard indicator price of lamb (18–22kg fat score 2–4) fell in most states in the week ending 1 August 2014, compared with the previous week. The largest fall occurred in New South Wales where the indicator price decreased by around 11 per cent to average 472 cents a kilogram. In other states, the indicator price fell by around 7 per cent in Victoria to average 501 cents a kilogram and by around 5 per cent in South Australia to average 504 cents a kilogram. In contrast, the indicator price rose by around 5 per cent in Western Australia to average 596 cents a kilogram.
For the week ending 6 August 2014, much of Australia recorded little to no rainfall. Rainfall in excess of 15 millimetres was recorded in Tasmania, most of Victoria, south-eastern South Australia, southern and north-eastern New South Wales, and the Queensland north tropical coast.
July 2014 rainfall was predominately below average across eastern Australia, with much of the Gascoyne and Mid West regions of Western Australia recording well above average falls. July rainfall was above average for parts of eastern and southern Tasmania, the north of Western Australia and the south of the Northern Territory. Average rainfall was recorded across the remainder of Australia including the wheat/sheep zones of South Australia and Western Australia and central west New South Wales.
Relative upper and lower level soil moisture for July 2014 was predominately average to above average across much of the southern cropping zone, with much of the wheat/sheep zone in Queensland, northern New South Wales and the north of the Western Australia continuing to experience significant soil moisture deficiencies.
The latest Bureau of Meteorology drought statement indicates that short-term (8-month) rainfall deficiencies have increased in extent over southern Queensland and northern New South Wales. Longer term (22-month) rainfall deficiencies have increased in Western Australia, Queensland, New South Wales, South Australia and the Northern Territory compared with the previous drought statement (Bureau of Meteorology 'Drought Statement', 6 August 2014).
The rainfall forecast for the next eight days indicates that rainfall is likely to be restricted to the southern and eastern coastlines of Australia, with little or no rainfall forecast for those parts of Queensland, New South Wales and Western Australia that are currently experiencing significant soil moisture deficiencies.
Rainfall this week
For the week ending 6 August 2014, rainfall was recorded in Tasmania, most of Victoria, south-eastern South Australia, southern and north-eastern New South Wales, and the Queensland north tropical coast. The highest recorded rainfall total was 222 millimetres at Mount Read, north of Queenstown in Tasmania.
For further information go to www.bom.gov.au/climate/current/weeklyrain.shtml
Rainfall for the week ending 6 August 2014
©Commonwealth of Australia 2014, Australian Bureau of Meteorology Issued: 6/08/2014
Production and commodities
The world coarse grains indicator price (US No. 2 yellow corn, free on board Gulf ports) averaged US$178 a tonne for the week ending 6 August 2014, compared with US$181 a tonne in the previous week.
The world canola indicator price (Rapeseed, Europe, free on board Hamburg) averaged US$430 a tonne in the week ending 5 August 2014, largely unchanged from the previous week.
The world cotton indicator price (the Cotlook 'A' index) averaged US74.2 cents a pound in the week ending 6 August 2014, around 9 per cent lower than the previous week. This is the sixth consecutive week the world cotton indicator price has fallen and it is now around 20 per cent lower than in late June 2014.
The world sugar indicator price (Intercontinental Exchange, nearby futures, No. 11 contract) averaged US16.3 cents a pound in the week ending 6 August 2014, around 4 per cent lower than the previous week.
Data from China Cotton Association indicates that around 2.3 million tonnes of cotton from government held stocks was sold to domestic millers in the 2013–14 season (August to July), equivalent to around 37 per cent of total government purchases over the same period. Sales of cotton from government held stocks in 2013-14 were around 38 per cent lower than last season.
Data from Brazil's Trade Ministry indicates that Brazil exported around 7.2 million tonnes of sugar (raw value) in the first four months of the 2014-15 season (April to March), compared with 8.2 million tonnes shipped over the same period last year.
The Australian canola indicator price (Portland, Victoria) was $465 a tonne in the week ending 6 August 2014, around 2 per cent lower than the previous week.
The Queensland young cattle indictor price (330–400 kg live weight C3) averaged 338 cents a kilogram in the week ending 1 August 2014, around 4 per cent higher than the previous week. Over the same period, the young cattle price increased by around 6 per cent in South Australia to average 343 cents a kilogram. In contrast, young cattle prices fell by around 2 per cent in both New South Wales and Victoria to average 366 cents a kilogram and 361 cents a kilogram, respectively.
The saleyard indicator price of lamb (18–22kg fat score 2–4) fell in most states in the week ending 1 August 2014, compared with the previous week. The largest fall occurred in New South Wales where the indicator price decreased by around 11 per cent to average 472 cents a kilogram. The indicator price fell by around 7 per cent in Victoria to average 501 cents a kilogram and by around 5 per cent in South Australia to average 504 cents a kilogram. In contrast, the indicator price rose by around 5 per cent in Western Australia to average 596 cents a kilogram.
The Global Dairy Trade (GDT) weighted average price of anhydrous milk fat was US$3457 a tonne on 5 August 2014, compared with US$3250 a tonne on 15 July 2014. Over the same period, the price of whole milk powder declined by around 12 per cent; the price of cheddar cheese declined by around 10 per cent; and the price of skim milk powder declined by around 7 per cent.
Changes to the wholesale prices of selected fruit were mixed in the week ending 2 August 2014. The wholesale prices of avocado (hass) and pineapple (smoothleaf) were higher than the previous week while the prices of watermelon (seedless) and strawberry were lower.
The wholesale prices of selected vegetables were generally lower in the week ending 2 August 2014. The wholesale prices of lettuce (iceberg), bean (round, stringless), tomato (field gourmet) and broccoli were lower than the previous week while the price of cauliflower was higher.