Gday lads. Thoughts on the upcoming planting season in your neck of the woods?
Budgets are done. Most are looking at deficit budgets here in WA for 2012/13 and that is with wheat at the 5 year average of $270/t? Today's price is $230/t.
Key expectations:
1. Reduced cropping area - marginal land will be fallowed even in higher rainfall zones if sheep are not in the enterprise mix. 2. Slight increase in sheep numbers - can only be organic as none will come back from over East. 3. Increased canola - higher subsoil levels will encourage a potentially large swing across to canola. Prices are looking quite attractive. 4. Reduced wheat/barley - the economics are marginal and with large domestic supplies likely to overhang the 12/13 harvest, no incentive to go cereal crazy. 5. No legumes - cheaper to buy N. 6. Lots of land on the market. The only stuff being sold is in medium to high rainfall zones.
What's this rising oil price going to do for prices? Could be our white knight for prices. Time to lock in input prices?
