Thursday, July 7, 2022

Daily Digest: September 18, 2020

Supply contracts cushion open market blow The tricky start to the fine wool season has highlighted the challenges with selling products on the commodity market.

Fine wool prices on the open market are down substantially on this time last year but the good news for growers is that with supply contracts in place, many are shielded from the hit.

Food, and to a lesser extent fibre, needs to be sold when harvested no matter what the state of the economy and environment are.

Things like supply and demand dynamics and global pandemics can make it tricky to realise the full worth of a product. When you’ve got to sell, you’re in a bad position to start with.

But much of the fine wool sector works on secure forward contracts that give certainty to farmers.

The strong wool sector is looking to its finer cousins for innovations it can take on board.

This is one that’s a no-brainer.

 

Bryan Gibson

 

Slow start to wool season

Demand for Merino wool has taken a hit but it’s not a dramatic downturn, says New Zealand Merino (NZM) chief executive John Brackenridge.

 

Farmers urged to consider alternatives

Farmers are being encouraged to have a Plan B up their sleeve if feed supplies do not flourish over the spring season.

 

Establishment key to successful hemp crop

Blair Drysdale is into his third season of growing hemp on his Southland farm and is still fine-tuning how it fits into his crop rotations.

 

Market bids up milk powders

Milk powders led the way to a 3.6% increase in the Global Dairy Trade (GDT) price index, the first market lift in more than two months.

 

Fonterra back in the black

Fonterra has posted a $659 million profit and will pay farmers $7.19/kg milksolids for the 2019-20 season.

 

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