Cattle prices in Australia rise to 17-month high after floods

Australian cattle prices gained to the highest in 17 months after wet weather and floods reduced livestock supply in Queensland state, according to an industry group.

The Eastern Young Cattle Indicator, which measures auction prices in the nation's east, rose 5.5 cents per kilogramme compared with a week earlier to A$3.50, Meat & Livestock Australia (MLA) said. Prices this week reached the highest since October 2008.

Exceptional rain fell in Queensland, central Australia and northern New South Wales during the last week of February and the first week of March, the Bureau of Meteorology said on March 5.

Some livestock sales were cancelled this week as rivers flooded and weight limits were introduced on damaged roads, MLA said. Rain has also already revived pastures and boosted demand from producers rebuilding herds after drought.

"The improved seasonal conditions have given producers the confidence to hang onto young cattle for longer and sell them in better condition," the industry group said.

Prices may be near a peak, capped by weak beef demand in Japan and the US, competition in South Korea and the level of the Australian dollar, according to the report.

Mutton sheep prices this week rose to a record A$3.55 a kilogramme, up 80% compared with last year, it said.