March 19, 2004

Australian Cattle Prices Rise Along With Supply

Australian cattle prices in saleyards rose this week despite the increase of supplies, marketing concern Meat & Livestock Australia Ltd. said on Friday.
 
"Yardings have increased right across the country, particularly for export cattle," MLA said in a weekly market review.
 
Demand for cattle has been widespread, coming from processors, exporters, lotfeeders and, in the wake of recent scattered rains in eastern Australia, from restockers, who want to take advantage of rejuvenated pastures, it said.
 
Demand from Japan, the major export market, also is picking up, it said.
 
Around two-thirds of Australian beef production is exported, making it a major world beef exporter and making export demand an important driver of prices in domestic saleyards.
 
MLA said that in Japan, demand firmed this week, with importers increasing purchases for the Golden Week holiday period toward the end of April.
 
These purchases also will arrive in Japan after an import tariff on chilled beef drops to 38.5% April 1 from 50% now, it said.
 
"Low shipments of Australian beef during the first half of March of approximately 14,000 (metric) tons may possibly lend further support to Australian export prices in the near term," it said.
 
Australian beef exports to Japan in February totaled 35,016 tons.
 
Prices in Japan for Australian chilled grass-fed fullsets added 8 cents this week to US$1.95 a pound, including carriage and freight, up from a year- ago level of US$1.72/lb. A fullset comprises about a dozen different cuts of beef.
 
The estimated free on board price for this product in Australia was quoted at A$5.32 free alongside, up 14 cents over the week, but still down from A$5.97 a year ago, it said.
 
In Australia, a national price indicator for the type of beast suitable for Japan closed the week 8 cents higher at A$3.07 a kilogram, still down from A$3.41/kg a year ago.
 
In the U.S. this week, the market for Australian beef was mixed, with buyers still reluctant to make forward commitments due to expectations of lower-priced equivalent U.S. domestic product, MLA said.
 
In the U.S., Australian frozen 95 chemical lean (CL) bull beef added 2 cents to US$1.17/lb (including carriage, insurance and freight), still up from US$0.96/lb a year ago.
 
Frozen 90CL cow beef lost 1 cent to US$1.08/lb, up from US$0.89 a year ago.
 
The free on board prices in Australia for these products fell 2 cents and 9 cents to A$3.08/kg estimated dressed weight and A$2.82/kg respectively, free alongside.
 
In Australian saleyards, a national price indicator for cows suitable for the U.S. trade slipped 3 cents to A$2.64/kg estimated carcass weight, down from A$2.76 a year ago.
 
In South Korea, demand still remains down from before the country banned U.S. beef imports late last year, it said.
 
But there are signs of a recovery in consumption, and the absence of U.S. product from the market has led to higher wholesale prices, with these expected to improve further, it said.
 
A national price indicator for the type of beast suitable for the South Korea trade edged 2 cents higher to close the week at A$3.03/kg, down from A$3.22/kg a year ago.
 
A national price indicator for domestic trade steers added 4 cents to settle at A$3.25/kg, down from a year-ago level of A$3.39/kg.