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Mecardo Blog

Trump has won, now what?

Posted by Andrew Whitelaw on 10 November 2016

As you will be aware the United States have elected their 45th President. In what can only be considered a heated contest, Trump was victorious. The media and the pollsters got it all wrong, but they were also wrong about Brexit. During the campaign, policy took a back seat to personal attacks. In this update, we will highlight the initial obvious impacts likely to be felt on agriculture.

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Topics: markets, Politics

Grain & Canola NPE contracts, the simple facts

Posted by Robert Herrmann on 3 November 2016

In an attempt to secure supply a recent response from grain traders and merchants to the low world prices is to offer and promote to grain growers No Price Established (NPE) contracts. As with any contract there has to be something in it for the seller, and also something for the buyer. Lets have a quick overview looking from both sides.

It is important to note that NPE contracts come under many different guises including Fast Cash from Agfarm, and Market Advantage from AWB.

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Topics: wheat

How do you reduce price volatility in wool?

Posted by Matt Dalgleish on 3 October 2016

This blog article takes a look at managing downside price risk exposure for a wool grower using forward contracts and minimum price contracts.

There are two predominant strategies to reduce the effect of price volatility when selling physical wool for a date in the future. These are by using a forward contract or using a minimum price contract (MPC).

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Topics: Wool market / wool price, Wool industry

Mecardo are on tour!

Posted by Andrew Whitelaw on 5 August 2016

The GRDC are running a series of farm business updates during August and September. Mecardo are excited to have been invited along to present at events across the east coast. 

The GRDC Farm Business Update provides a unique forum for growers and advisers to learn from, and network with, leading industry professionals. 

The Mecardo team will be contributing the first presentation for each day. Our presentation will be titled 'Getting a gauge on the market', and will be used to set the scene for the following presenters. 

We recommend attending these events, as it is a good opportunity to get some new insights

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As the EYCI advances are restockers getting grass fever?

Posted by Robert Herrmann on 5 July 2016

The EYCI has hit an all-time high of 660.50 cents per kg cwt; this brings to the fore the question of where is the top of the cattle market? Has the market peaked? The old adage of “it takes high prices to fix high prices” starts to resonate.

We have also been around long enough to see frenzied bidding when conditions are good and grass is abundant – grass fever!

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Topics: Australian cattle industry, beef market

Dairy farmers left holding the pail

Posted by Robert Herrmann on 30 June 2016

In rural and mainstream news services there is a regular stream of stories recounting the disastrous situation dairy farmers find themselves in as a result of the “claw-backs” advised by the milk processors last month.

Unfortunate as it is, these claw-backs are part and parcel of the milk supply agreements most of the dairy farmers in Australia commit to. In this article we aim to give an insight into dairy contracts for those outwith the dairy industry, and why most of the risk is held by the farmer.

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Topics: dairy

Is Brazil a real threat to Australian cattle markets?

Posted by Augusto Semmelroth on 25 May 2016

Australia and Brazil are undeniably the two “giants” in the global beef trade. Together, both markets account for 35-45% of world trade, and to some extent, dictate the supply and price of beef for available for international customers. With that in mind, our analyst in Brazil Augusto looks into whether the two compete head-to-head for market share.

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Topics: Cattle market / cattle price, beef price, beef market

How to use "one cancels other" wool orders.

Posted by Matt Dalgleish on 23 May 2016

The purpose of this blog is to explain more about using “one cancels other” or OCO orders on the Riemann wool forward market with a particular focus on the 19 and 21-micron contracts. As part of the blog we will also undertake analysis of the basis between 19 and 21-micron classes to outline the seasonal movement in this basis, including how/why the basis has narrowed over time. 

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Topics: Wool market / wool price, Wool industry

2016/17 Federal Budget - Agriculture highlights

Posted by Andrew Whitelaw on 4 May 2016

The treasurer Scott Morrison released the federal budget last night. It was largely bereft of any major surprises with hints in the days leading up to the budget of it being in favour of small businesses and middle income earners.

In this blog post we have highlighted some of the budget items impacting on agriculture and agribusiness.

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Topics: Agriculture

How to deal with animal activists: A lesson from the egg industry

Posted by Robert Herrmann on 20 April 2016

The egg industry is a good example in how to deal with Animal Activists, and perhaps it can provide some ideas for the Australian wool industry around how to respond to the mulesing debate.

The production of cage eggs and the subject of mulesing have been easy targets for the radical activists, however the end result to each industry is starkly different.

When producers are asked, both industries are adamant that their practices (cages and mulesing) are not only humane, but actually improve the welfare of the bird/sheep.

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Topics: Wool industry, Australian wool industry, animal rights

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