Beef prices climb as supply contracts in key markets
With production volumes contracting in most major beef-producing regions, global cattle prices have continued to rise across recent months.
Reduced end-user demand and inventory destocking has been a feature of the global fertiliser market through the fourth quarter in 2012, resulting in a lull in global trading activity which is expected to continue in the first quarter, 2013.
According to a new report from Rabobank, global fertiliser prices are likely to remain relatively range-bound and market fundamentals suggest global fertiliser markets will remain relatively balanced through the first quarter, 2013.
However, a general oversupply, especially across the phosphate and potash complex, will linger through Q1 2013 providing some potential downside price risk. As a result, Rabobank has a slightly bearish view for the fertiliser complex through Q1 2013, with urea being an exception.
A lull in global trading activity enveloped the fertiliser complex through Q4 2012. This is normal given the state of planting and harvest during this period. As a result of the subdued demand and lacklustre trading, most nutrient prices remained relatively range-bound throughout the period. Overall, price movements were mixed across the fertiliser complex, but market sentiment has generally been weaker.
"Looking ahead, as agricultural markets are faced with the challenge of rebuilding global stocks next season, and given the precariously balanced fundamentals, global agri commodity prices are expected to remain at elevated levels in 2013." says Rabobank analyst, Dirk Jan Kennes.
Buyers have remained cautious through the closing stages of 2012. Globally, end-user demand is seasonally low at this time of the year. Southern Hemisphere crops are underway, while the large Northern Hemisphere crops have been harvested. As a result, many market participants have taken the opportunity to liquidate excess fertiliser inventories.
In the short term, at least, this means global buyers will continue to defer purchases in anticipation of lower prices given short term requirements are covered. In addition, as the euro crisis continues, European farmers are very cautious about locking in fertiliser purchases far in advance of the application season.
Like many manufacturers around the world, European agricultural machinery and tractor manufacturers are currently operating in a difficult market environment. But they are heading to the world’s largest agricultural machinery event in Hanover next month with a degree of cautious optimism.
Established in 2021, the John Deere Technician of the Year Awards champion the important contribution parts and service technicians make to the Australian and New Zealand agriculture, construction and forestry industries.
Beef + Lamb New Zealand (B+LNZ) is calling on farmers from all regions to take part in the final season of the Sheep Poo Study aiming to build a clearer picture of how facial eczema (FE) affects farms across New Zealand.
New Zealand is closer to eradicating bovine TB than ever before, but possums remain a threat, says Beef + Lamb New Zealand.
Foreign Affairs Minister Winston Peters has joined the debate around the proposed sale of Fonterra’s consumer and related businesses, demanding answers from the co-operative around its milk supply deal with the buyer, Lactalis.
The ACT Party says media reports that global dairy giant Nestle has withdrawn from the Dairy Methane Action Alliance shows why New Zealand needs to rethink its approach to climate.
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