January 18, 2010

Australia's 2010 livestock markets commence stronger

Widespread rains across dry areas of Australia over the second half of December and early January has seen 2010 livestock markets commence with low yardings and strong restocker interest.

Cattle prices have recovered quickly from their December lows, following the useful rains – with the Eastern Young Cattle Indicator (EYCI) at 315¢/kg cwt on Thursday (Jan 14), up 11% on closing 2009 rates.

However, cattle prices are still down on previous years, reflecting continued sluggish export demand and a high Australian dollar which is up over 40% against both the US dollar and Japanese yen since January 2009.

The EYCI is still 4% down on opening rates in both 2008 and 2009. With low export prices and rain-affected turnoff, some export works may extend seasonal closures, limiting any further short term gains in cattle prices.