August 3, 2009
Australia cattle on feed recover on cheaper grain
Feed grain prices in July continued to average well below the same period last year, helping to boost the financial viability of lotfeeders in Australia.
Indicative feed grain prices in the Riverina and Darling Downs averaged 40-percent, 41-percent and 24-percent cheaper than a year earlier for feed barley, feed wheat, and sorghum.
The cheaper grain is accelerating the lot feeding sector's recovery, relative to previous years when low supplies and commodity price spikes led to record grain prices.
The high grain prices resulted in the surge of production costs, forcing a reduction in numbers on feed.
Feed grain prices in Darling Downs, Queensland, this year have risen 20 percent since January, while the number of cattle in Queensland on feed for the same period has risen 23 percent to 784,087 head.
In the same period, the number of cattle on feed in New South Wales and Victoria has fallen two percent to 507,791 head, while the average price of Riverina feed grain increased two percent.
