May 24, 2004

Australian Cattle Market: Prices Mostly Up; Export Demand Strong

Cattle prices in Australian saleyards mostly rose this week, due in part to strong export demand, marketing concern Meat & Livestock Australia Ltd. reported Friday.
 
Demand from the major markets of Japan, the U.S. and South Korea has surged in recent weeks, the MLA said in a weekly market review.
 
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.
 
The MLA said that in Japan, the wholesale market for Australian beef remained strong this week, holding the price of most cuts at relatively high levels.
 
Prices in Japan for Australian chilled grass-fed fullsets held steady at US$1.94/pound, including carriage and freight, well up from the year-ago level of US$1.45/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$5.74 free alongside, down 4 cents over the week, and well up from A$4.46 a year ago, it said.
 
In Australia, a national price indicator for the type of beast suitable for Japan closed the week 6 cents higher at A$3.03/kg, equal to the level a year ago.
 
In the U.S. this week, the price of imported Australian beef rose again, to a level last visited in March 1994, as end users competed for limited supplies of imported product, the MLA said.
 
End user demand has increased significantly from last year, it said, helped by a fall in U.S. lean beef supplies, and a U.S. ban on Canadian cows and cow beef.
 
U.S. fast food operators also are increasing the proportion of imported lean beef in their hamburger patty formulations, it said.
 
In the U.S., Australian frozen 95 chemical lean (CL) bull beef surged 9 cents to US$1.42 a pound, including carriage, insurance and freight, way up from US$0.88/lb a year ago.
 
Frozen 90CL cow beef jumped 6 cents to US$1.29/lb, up from US$0.84 a year ago.
 
The free on board prices in Australia for these products gained 24 cents and 16 cents to A$4.14 a kilogram estimated dressed weight and A$3.73/kg respectively, free alongside.
 
In Australian saleyards, a national price indicator for cows suitable for the U.S. trade added 13 cents to A$2.56 a kilogram estimated carcass weight, well up from A$2.12 a year ago.
 
A national price indicator for the type of beast suitable for the South Korea trade edged 1 cent lower to close the week at A$2.96/kg, down from A$2.98/kg a year go.
 
A national price indicator for domestic trade steers added 1 cent to A$3.14/kg, down from a year-ago level of A$3.24/kg.