What's Going on With Shipping? - "Falling Container Rates"
- Long-term rates are easing as spot shipping rates drop.
Western Australia Crops
From Hay Kings on Facebook, a live look at the Australian oaten hay crop.
Dairy Australia Reports:
- With little rainfall across the region (Western Australia) this week, clear sunny days and rising temperatures are boosting crop growth.
- Demand for hay has flattened, as hay cutting commences across large parts of the region and growers are out on paddocks. There is still plenty of green feed available, and most on-farm stocks are sufficient for the medium term.
- The predictions of a bumper wheat crop continue to be on track, with good growth and yield potential throughout the region. Weather is the only major concern with harvest.
All indications from Dairy Australia suggest adequate feed supplies in much of Australia. About half of the oaten hay exported from Australia comes from Western Australia and will be competitive in Japanese and South Korean markets.
- Exchange rates continue to dampen demand for agricultural exports. The yen is the weakest it has been, relative to the dollar, since 1998.
- Equipment imports from Europe will be favorable as the dollar nears parody with the Euro. The pound hit an all-time low last week.
The Japanese are the largest importers of grass hay (timothy) from Washington State. Weakness in the yen has capped grass hay prices, peaking at an average of $350 per ton.
Source: USDA NASS, Oct. 3, 2022