August 13, 2007

 

Australia's prices of live cattle exports on the rise 

 

 

Meat and Livestock Australia (MLA) reports that last week's national indicator prices for export steers and cows rebounded as Queensland supply fell 10 percent, on already reduced numbers. Medium steers gained 4 cents per kilogramme liveweight (lwt), Japan ox gained 9 cents and the US cow indicator was up 2 cents nationally, but 7 cents in Queensland. In contrast, the Eastern Young Cattle Indicator (EYCI) weakened 2 cents/kg hundredweight (cwt) and feeder steers by 4 cents/kg lwt.

 

MLA's National Livestock Reported Service reports the supply of C- muscled grown steers increased by 21 percent in comparison with last week.

 

This increase occurred on the back of some recently improved demand across the export quality medium steer and Japan ox categories. One significant change has been the number of heavyweight C4 grown steers, which have more than doubled nationally on the very low numbers last week.

 

Despite the increase in numbers, competition from processors remained strong. NSW markets contributed the largest number of Japan ox to the national indicator, followed by Queensland and Victoria. Nationally, the Japan ox indicator gained 9 cents, to reach 185 cents/kg lwt.

 

Medium C3 grown steers suited for the Korean market followed a similar trend, with improvements in demand. Numbers in these lines were lower in comparison with last week, which assisted competition and resulted in further price gains. At the end of Thursday sales, the medium steer indicator illustrated a price gain of 3 cents across all states, resulting in a 5 cents rise to the national indicator, which reached 175 cents/kg lwt.

 

On the other hand, demand for young cattle has been mixed as price trends have ranged from 4 cents dearer through to 4 cents/kg lwt cheaper. Nationally, indicator prices for vealer steers increased, to reach an average of 195 cents/kg lwt due to lower supplies. Yearling steer values were unchanged, with the national indicator at 192 cents/kg lwt. Demand for feeder steers on the other hand has slipped, seeing prices fall 4 cents to 179 cents/kg lwt.

 

There was stronger demand for young cattle in NSW (New South Wales) against the other states, as prices increased 1 cent for yearlings and 6 cents/kg lwt for the lower supplies of vealer steers. Queensland went slightly against the cheaper trend within the feeder steer category, with the tighter numbers recording price increases of 6 cents/kg lwt, however, the averaged price remained below the national indicator.

 

EYCI's benchmark was down after the completion of Thursday's sales, dropping 2 cents from last week to finish trading at 337.25 cents/kg cwt.

 

Cows enjoy improved prices on reduced supply

 

Nationally, cow numbers at MLA's NLRS reported saleyards dropping by 3 percent on last week's already diminished numbers. A general variation in quality was noted, reflecting the seasonal conditions. Prices for better finished cows across all weight ranges were assisted by lower supply. Processors were very active in securing numbers from the tighter availability to meet kill sheet requirements.

 

Lightweight D2 cow prices ranged from 70 cents to 146 cents and averaged 113 cents, an increase of 11 cents/kg lwt. The E muscled dairy lines within the lightweight category also met good demand, with average prices increasing 13 cents, to 104 cents/kg lwt. Medium weight D2 and D3 muscled cows enjoyed gains of between 2 cents to 4 cents, to average 120 cents and 131 cents/kg lwt, respectively. Additionally, demand was again strong in the dairy categories. Heavyweight D3 and 4 score beef cows followed a similar trend, with average prices ranging from firm to 2 cents dearer, making 135 cents and 140 cents/kg lwt, respectively.

 

Indicators for US cow prices across the eastern states illustrated significant price gains, particularly in Queensland and NSW, with prices increasing by 7¢ and 3¢/kg lwt, respectively. However, the large yarding of cows experienced at Midland in WA restricted the rise in the national indicator price to only 2 cents, at 130 cents/kg lwt.