Rain has boosted confidence in rural commodities

Northern NSW and Queensland have received rainfall with triple-digit totals in the past week, while other parts of the country await the autumn break.

Buoyed by rain across parts of eastern Australia, livestock and grain prices have experienced a spike in a reflection of industry confidence.

The best falls were in northern NSW and Queensland, with triple-digit totals in the past week, providing an ideal start to winter cropping programs and livestock enterprises but interrupting the harvest of summer crops and damaging infrastructure.

The highest totals were in NSW, with Taree picking up 176mm since April 1, followed by Moss Vale (171mm) and Nowra (163mm). Other good falls were recorded at Orange (134mm), Lithgow (124mm), Dubbo (110mm), Tamworth (106mm) and Maitland (98mm).

The rain was enough to instil some confidence in livestock markets and after a period of tentativeness from restockers, prices have started to show a reprieve. Agents say some buyers pre-empted the rain and exhibited more buying confidence a couple of weeks ago.

Meat and Livestock Australia’s Eastern States Young Cattle Indicator has bounced up above the benchmark 600c/kg mark to settle at 624.76c/kg after the opening markets this week. This is an improvement of 37.73c/kg in the past month. The Trade Lamb Indicator has increased by 57.51c/kg in the past week to settle at 659.97c/kg on Tuesday.

The rain also had an impact on grain prices which shot up by $10-$20 a tonne after the rain.

At Victorian ports, wheat prices are tracking at $341/tonne, canola has increased to $650/tonne, lentils $940/tonne, and oaten hay is averaging $290/tonne.

NSW Farmers president and Mullaley farmer Xavier Martin said his property received 43mm of rain in the past three days and said it had “come with mixed blessings”.

“It has been great rainfall for some but not others,” Mr Martin said.

Mr Martin said the rainfall had stalled those who wanted to pick cotton, and there were concerns for other summer crops, including mungbeans and corn. He said farmers were anticipating downgrades for crops as a result of the rainfall.

“We are hearing of disruptions for our summer crops,” he said.

NSW Farmers president Xavier Martin.

Matthew Madden, who farms northeast of Moree in NSW, measured 70mm of rain in the past three days and said while the rain was welcome, cotton picking had been delayed.

“There are people north of here who have had 150mm to 180mm,” he said.

Mr Madden said parts of Queensland’s Western Downs region had received up to 300mm over the past 10 days.

Fellow Moree farmer Oscar Pearse received 105mm of rain over the past three days and said that while the rain was mostly welcome, cotton picking would likely be further delayed in many regions.

Tamworth beef cattle and crop producer Norm Thomas said rainfall across his properties varied from 45mm to 120mm in the past three days.

“It was all gentle soaking rain, perfect for us,” he said.

Mr Thomas said the rain was ideal for pasture growth and the start of winter cropping.

Further south, livestock agent Scott Campbell of Peter Ruraro Rodwells at Wodonga said 24mm fell at his property over the past few days.

“We had been as dry as anywhere, and this was a really good rain event,” he said.

Mr Campbell said prices for lighter cattle started to improve a couple of weeks ago. He had heard of light 200kg calves making around 500c/kg at Roma in Queensland in the past week.

“We saw some strength in the market simply based on the fact that this rain event was coming,” he said.

The rain in NSW and Queensland comes as many other parts of the country await the crucial autumn break. Parts of Western Australia and South Australia have recorded less than 25mm of rain for the year.

Just 1mm of rain has fallen at Busselton in Western Australia since January 1, while 5mm has fallen in Perth, 14mm at Katanning, 20mm at Geraldton and 22mm at Narrogin.

In South Australia, Clare has measured just 8mm for 2024, with Kingscote on Kangaroo Island receiving 21mm, while Cleve and Ceduna have each recorded just 24mm.