June 18, 2005

Rainfall gives Australia's drought stricken cattle farmers some respite

Widespread rainfall in eastern Australia has helped bump up cattle and sheep prices this week.

Meat and Livestock Australia (MLA) said the rain had lifted cattle prices by as much as eight percent this week across the eastern states, with drought-induced culling ending and more buyers entering the market. Lamb prices are up about 13 percent across all categories, and mutton by 15 percent.

Though the rain was far from relieving the drought in most districts, it renewed graziers' confidence for the winter months as it should boost pasture growth, and allow farmers to cut back on supplementary feeding.

MLA chief market analyst Peter Weeks said the prices were some of the strongest weekly rises seen for some time and have helped changed the mood of the markets, but further gains depend largely on follow up rain.

The Eastern Young Cattle Indicator strengthened 22.75 cents this week to 346 cents a kilo while the Eastern States Trade Lamb Indicator climbed 42 cents to 402 cents a kilo.