March 3, 2008

Australia reports 8 percent increase in cattle yardings

Australian officials said improved prices over the recent weeks prompted an 8-percent increase in yardings from the previous week.

Average young cattle prices dropped from last week, with the benchmark Eastern Young Cattle Indicator (EYCI) slipping AUD10.25 (US$9.53) on last week, to AUD336.25/kg cwt (US$313) on Thursday's sales.

Despite the strong Australian dollar, the eastern states US cow indicator lifted 1 cent.

In New South Wales, Bathurst and Wagga's throughput increased 34 percent and 29 percent respectively. In Victoria, Camperdown and Wodonga saw a 23-percent  jump in yardings, while Pakenham reported 27-percent hike.

Queensland, however, reported contradictory results with 31-percent drop in yardings last week.

Cattle slaughter in Queensland continues to be plagued by very wet conditions across the state, with last week's slaughter back 28 percent on the same period last year. Traditionally, Queensland cattle slaughter starts to go up on February, following substantially lower volumes due to the annual slowdown during December and January.

Majority of cattle being slaughtered are grassfed and are considered to be in premium quality.

Grain-fed cattle, however, are in tight supply, as grain prices are at their highest and cattle on feed numbers low. Australian processors are anticipating larger numbers to become available once the weather dries up.