Agsafe Weekly Rural Report

Finance:  The US dollar as firmed after the US elections weakening the NZ dollar.  It has maintained its value against the Australian dollar.   Brent Crude is around $71/barrel ranging from $70 to $75.

Wool:  Wool prices remain in the doldrums.    Small cottage industries will not save the wool industry.

Beef, Sheep & Venison schedules: The meat schedules are trending upwards with good demand from the major buyers.  The Chinese markets are also firming as their economy recovers.

Dairy Prices.  The dairy season in the North Island is going well, but there are reports of desperate situations in the deep south where excessive rains have all but destroyed some farms.  Some economists are now predicting a $10 payout following the surprise lifting of the Farm Gate Price last weekend to $9.50/kg.  The lower dollar has shows major changes in the international commodity prices.

The thought of a $10/kg ms payout is being suggested which will be good for the economy.  I would encourage you to redo your budgets and plan for undertaking some deferred autumn maintenance.  Fonterra’s interim payment schedule has an $8.05 payment from the December payment received in January, so the cashflow should be OK.  Good planning is always important!!.