Cattle prices in Australian markets stay firm as demand looks up both in the local and foreign markets.

Queensland's and South Australia's supply were higher offsetting the lower numbers in New South Wales and Western Australia. Light rainfall in southern New South Wales and Victoria reduced numbers and prompted competition to remain solid, with feeder and restocker demand again underpinning the market.

A combination of pre-winter culling and drop in cattle quality and restocker interest often causes a price low in May/June, particularly for young cattle and cows. However this year, improving export demand is maintaining firm to stronger prices. Values rose for Japan ox, medium steers and cows this week, reflecting continued rises in export prices to the US and Japan and a fall in the Australian dollar.

The global beef price recovery is being largely driven by low global beef stocks and falling competition from the US and South America, which also explains why the main rise has been for manufacturing grade beef and cheaper cuts into Russia, Japan and the US.

Lamb values remain at record levels for May, and 30-50% above the five-year average. Markets also lifted this week, led by finished categories, as total lamb numbers remained below a year ago and export and local demand is strong.

Similarly, sheep prices are at record levels and 50% above last year, with a further US$0.10 lift this week to US$3.70 per kilogramme cwt.