mag
16-6-2005, 11:01 pm
Quite week this week not much going in grains, domestic grain traders have ceased buying large volumes of grain from the wheat pool, as they are now uncertain of the effects of rain and how much grain will be produced this coming season, nice to see the speculators pausing a bit, they will jump in again at a later stage I guess, feedlotters are still trying to gain access to grains to cater the large number of cattle on feed, some cattle producers have now been put on waiting lists before they can get their cattle into feedlots so that they can reap the alleged benefits of the Japan export markets in beef. We expect the price of beef to decrease in the coming months if imports grow beyond the 17% mark , which will increase the import tariff on beef from 38.5% t 50%, so the effect will be passed back to beef producers in lower returns.