June 26, 2006

Australian beef prices rise despite abundant supplies
 

Growth in beef cattle prices in Australian saleyards were seemingly unstoppable last week, ending higher despite a 47 percent increase in cattle offered in major centers, Meat & Livestock Australia (MLA) said Friday (Jun 23).

Cattle numbers in New South Wales increased 89 percent this week but have not returned to the same levels two weeks ago.

Even so, rain in central and northern parts of the state is prompting producers to withhold stocks, due to a lack of quality cattle and the farmers' need to plant winter crops, it said.

However, offerings in Victoria rose due to worsening pasture conditions, MLA said.

There is aso continued limited availability of grown steers while young cattle prices rose, reflecting renewed restocker and lotfeeder demand, MLA said.

Forecasts of more rain prompted further restocker enthusiasm, it said.

Despite the uncertainty over when US beef exports to the Japanese market would resume and impact Australian beef, export prices for Australian beef are being pushed higher, MLA said.