September 26, 2006

Australian beef sales and export prices head lower as US resumes export
 

The weighted average saleyard price of beef cattle is forecast to fall 10 percent in 2006-07, to average US$2.90/kg cwt, according to figures released this week by the Australian Bureau of Agricultural and Resource Economics (ABARE).

The estimates were based on the expected lower demand in Japan, South Korea and the US and higher Australian beef production due to poor pasture conditions in many areas that saw many cattle being sent early for slaughter.

According to ABARE, Australian exports to Japan in 2006-07 are forecast to fall 6 percent to 364,000 tonnes and that to South Korea is expected to fall 9 percent to 110,000 tonnes.

Export prices for grainfed and grassfed product were expected to fall 4 percent and 5 percent respectively, to average US$4.76 and US$4.10/kg.

In the US, increased domestic supplies and higher volumes from Uruguay are expected to reduce demand for Australian beef. ABARE expects prices for 90CL manufacturing beef to fall 10 percent in 2006-07, to average US$2.50/kg.