February 27, 2012

Western Australia faces 8% drop in cattle stocks

With an unfavourable hot season for cattle movements in the southern regions, cattle supplies at Western Australia's markets fell 8% compared with the same week last year, as yardings at both Muchea and the Great Southern sale decreased.

Prices in Western Australia remain strong, showing more resilience to the higher AUD than the eastern states prices. Supplies in the physical markets have been scarce over the past six months, resulting in fierce competition and historically strong prices. Cattle quality has generally been above average, with both young and grown cattle showing the benefits of the improved season.

Feeder and restocker demand was more selective this week, as the vealer season comes to an end in southern regions. Vealer steers to feeders averaged AUD0.20 (US$ 0.21) per kilogramme this week. Heavy cow prices remained buoyant, finishing 28% above the same time last year on AUD0.17 (US$0.18) per kilogramme.