Media Release
StockCo and Australian Wool Network (AWN) are pleased to announce an exciting partnership that will provide AWN’s extensive customer base with access to StockCo’s strategic livestock funding solutions. Through entering a distribution agreement, AWN will now be able to offer StockCo’s innovative livestock funding solutions directly to their customer base.
StockCo’s Australian COO, Tim Pryor, said he was delighted to be working with AWN and their customers. “AWN is well recognised and highly regarded particularly across Australia’s sheep and wool industries. We’re excited to be working with AWN’s high quality team of wool brokers and livestock specialists and look forward to partnering with them to assist AWN customers to maximise livestock production via access to StockCo’s livestock funding facilities.”
Rick Maybury, AWN’s Chief Operating Officer said, “StockCo is a genuine customer-focused model that delivers livestock finance specifically tailored for farmers.”
“We were attracted to the flexibility that StockCo’s livestock funding facilities can provide our clients, especially those in need of seasonal funding support to help grow their livestock operation.”
About StockCo:
StockCo is Australia’s largest specialist livestock funder with a solid record of providing innovative livestock funding solutions in Australia and New Zealand since 1995. These funding facilities offer assistance with financing the purchase of sheep and cattle for backgrounding, finishing or trading purposes and are available to fund livestock in both feedlots and on pasture.
As part of this service, StockCo will fund 100% of the purchase price and only requires payment of the purchase price and accrued finance charges once livestock is sold. In most cases, StockCo will only take direct security over the livestock being purchased.
About AWN:
AWN is Australia’s largest independent wool broker offering a range of wool marketing and selling services. As such, AWN is the only wool marketing company with its own Australian-based wool manufacturing facility and a dedicated retail presence to market its client’s wool directly to consumers.
AWN and its subsidiary in WA, Dyson Jones, markets in excess of 275,000 bales of wool across Australia for some 8,000 woolgrowers and has specialist wool buying activities in NSW, VIC, TAS and SA.
The company’s core business is focused on delivering value to its client base by embracing innovations and establishing strategic alliances that will deliver financial benefits to its client base.
For more information visit www.stockco.com.au or contact your local AWN Wool & Sheep Specialist.
For media enquiries please contact:
Tim Prior
Chief Operating Officer
0407 754 535
[email protected]
More wet weather this week cut cattle yardings in Queensland, and encouraged restockers to return to the market in NSW. At a time of year when prices generally fall, or are steady, we saw a further appreciation in the Eastern Young Cattle Indicator (EYCI), but not in all categories.
We’ve ticked over the billion-dollar milestone for total value of wool sold this year which is something of an achievement. At this point in the season last year the value was 26% lower than it is today despite the cumulative bales sold being just 10% lower. The wool market hasn’t reached this mark by week 17 since 2002.
The futures markets are largely quiet, as the northern hemisphere is largely complete for 2017 and seeding progresses for next year. At a local level, it is important to start considering local premiums and how to take advantage of them.
At a local level, harvest has begun in the north and it won’t be long until the bulk of farms around the country will be ‘reaping what they have sown’. During October, rainfall has been strong through much of northern NSW and QLD, although not adding much in the way of benefits to the winter crop has added confidence in the summer crop. This has resulted in consumers reducing some of their buying appetite, as they reassess the situation for the coming 6 months.
At present there are considerable premiums available for growers. As growers start to sell the crop, the logic would be for basis to fall.
The Eastern Young Cattle Indicator (EYCI) lifted again this week, recovering a further 3% to see it close at 558.50¢/kg cwt with some good rainfall to much of Queensland providing a bit of a boost. Gains noted too across the East coast for Heavy and Feeder Steers, up 1-2% to round out a reasonably firm performance for cattle markets.
It points to how much optimism was sapped out of restocker buying activity during the Winter dry spell, but that may change if the northern rains continue and NSW starts to get a bit of decent rainfall too. Figure 2 shows the national rain tally over the last week with Queensland the clear beneficiary and next week’s forecast calls for a continuation across much of the north and spreading into NSW which should continue to support demand for young cattle by restockers.
After a recent lift the 90CL is knocking on the door of 600¢/kg CIF again and with the Bureau forecast of a fairly normal November rainfall pattern and a good chance of a slightly wetter than average December all indications are for continued support for young cattle prices in the coming weeks.
Last week we spent a couple of articles looking at the interesting price phenomenon that we are currently seeing in lamb markets. Strong prices continued last week, in the face of strong supplies, so today we take a look at the export data to see where the extra lamb is going.
A simple indication of increased demand is the fact that in 2014 the Eastern States Trade Lamb Indicator (ESTLI) averaged 459¢/kg cwt from July to October. This year the ESTLI has averaged 604¢/kg, 31% higher.
We have in the past seen significant jumps in lamb demand from exports markets, and we might now be seeing early indications of the next one. Significantly larger export volumes, coinciding with similar or stronger prices suggests that consumers in the US, Middle East and Asia have become comfortable with the higher lamb prices seen over the past nine months.
Spring in general, and October, in particular, are known for falling lamb prices. We usually see supply increasing as winter and spring lambs hit the market, pushing all sheep and lamb markets lower. The price rally this week is particularly unusual.
After a couple of weeks of intermittent supply data, sheep slaughter has hit 136,925 head (figure 3), the highest level since the end of 2015. Remarkably, mutton prices also rallied this week, the National Mutton Indicator gained 24¢ to sit back at 397¢/kg cwt.
Whether higher prices are enough to draw more lambs to the market while it’s raining is yet to be seen, but we do know that growers who sell lambs in October have never had it so good.
Wool was the hot topic of industry conversation again this week but it wasn’t enough to distract the market from deciding on what fibres it wants to support. Results were particularly mixed with fine fibres attracting premiums whilst the rest of the categories felt losses. 
On the other hand, medium to coarse wools of 19.5 to 23 MPG weren’t as readily sought after. Prices fell on average 20 to 30 ¢ by the weeks close. Crossbred wool followed the lead of the medium to coarse Merino fibres, losing ground across the board. The harshest fall was in 28 MPG at an average drop of 30¢ in both Fremantle and Sydney markets.
The number of bales on offer next week is expected to drop down to a listing of 43,764 for the three selling centres over Wednesday and Thursday (figure 2). The focus on micron this week might be an indication of where the market is starting to move to. Some strong forward prices in the 18.5 and 19 micron wools where buyers were willing to pay a premium out to next year suggest that preference for the finer wool is likely to grow.
The Australian Bureau of Agricultural Resource Economics and Sciences (ABARES) made an interesting move this week, warning of crop downgrades. Meanwhile the United States Department of Agriculture (USDA) made their monthly predictions.
Global wheat production was lifted 5.3mmt thanks to improving production in the EU and India. The USDA did downgrade the Australian crop by 1mmt to 21.5mmt. Figure 2 shows we are still well and truly on track for a record carryout for 17/18.
There was a significant jump in yardings this week, but this failed to dampen cattle prices, which continued to rally. In fact, it seems to be rain that is doing the opposite of dampening prices, with prices finding strength, almost across the board.
The Eastern Young Cattle Indicator (EYCI) continued to rally, but the pace slowed. The EYCI gained 8¢ this week, to lift it to the levels of five weeks ago, at 541.25¢/kg cwt (Figure 2).
The forecast says there is more to come for at least half of Queensland (figure 3), and this suggests that there is only one way for cattle prices to go next week, especially young cattle prices.