Loading…
Eastern Australia's worsening drought is hurting agribusinesses across the farm sector. Nufarm guided FY2018 EBIT to A$5-10 million versus A$51.6 million a year earlier, and Graincorp, AACo, Elders and RuralCo cited weaker receivals, higher feed costs, lower cattle prices and reduced chemical demand.
Drought-driven feed cost increases and herd liquidation point to tighter local feed grain demand and supply for Australian feedlots and livestock, supporting grain and feed prices in the region.
rogermontgomery.comStuart JacksonJul 29, 2018Not enough comparable past events yet for a historical read.
After 1,072 past bullish weather events, Wheat (SRW) moved a median +0.2% over 5 sessions (55% higher; middle half -1.4% to +2.3%), and +0.3% over 20.
After 18 past bearish weather events, Live Cattle moved a median +0.1% over 5 sessions (56% higher; middle half -0.7% to +0.9%), and -0.1% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
