October 2, 2006

 

Australian cattle prices the lowest in 3 ½ years
 

 

Beef cattle prices in Australian saleyards took its biggest weekly hit in more than three-and-a-half years as cattle arrived in larger quantities but at lower quality, Meat & Livestock Australia Ltd. said Friday (Sep 29).

 

The 5 percent weekly fall was the largest since early 2003, reflecting a decline in quality and the increased availability of stock, the marketing concern said. 

 

A rolling seven-day benchmark Eastern Young Cattle Indicator settled at A$3.27 a kilogramme estimated carcass weight Thursday, 88 cents lower from a year earlier.

 

Expectations of continued high prices for feed and the closure of some processors for maintenance has led to more sell-offs at saleyards.

 

Despite the large numbers at saleyard, throughput figures for September were 2 percent below August and 13 percent below the five year average, MLA said.

 

Meanwhile, beef export prices to Japan were little changed last week, MLA said. Prices to Japan for Australian chilled grass-fed fullsets remained unchanged at US$2.09/pound, including carriage and freight.

 

MLA expects a seasonal rise in buyer interest in the coming weeks as stocks in Japan tighten due to US beef's slow recovery in the market.

 

The estimated free-on-board price for grass-fed fullsets in Australia rose 3 cents this week to A$5.72/kg, compared with A$5.15/kg a year earlier.

 

However, Australian beef exports to the US slipped last week, MLA said. 

 

In the US, Australian frozen 95 chemical lean, bull beef fell 4 cents to US$1.41/lb, including carriage, but were still up 4 cents from a year earlier.

 

Frozen 90CL cow beef was down 1 cent from a year earlier.

 

The free-on-board prices in Australia for each of these products lost 8 cents to A$3.77/kg and 3 cents to A$3.36/kg, respectively.

 

US beef demand has now been dropping for six consecutive quarters, and experts have blamed it on the waning interest in high protein, low carbohydrate diets. The lull before the holiday period could also be responsible for lower interest, MLA said.