November 12, 2007

 

Local demand surges for Australian cattle

 

 

Rains have influenced supply of Meat and Livestock Australia's (MLA) National Livestock Reporting Service (NLRS) reported saleyards, with yardings reduced 10 percent this week.

 

Young cattle sold to steady competition, as the trade steer indicator remained firm at 161 cents per kilogramme liveweight (/kg lwt). Medium and heavy grown steers lifted 4 cents and 5 cents, to 156 cents and 168 cents, respectively, while US cows also made further ground to 119 cents, up 2 cents/kg lwt.

 

Over the past week, 10 to 170 millimetres of rains poured on vast areas of Victoria which resulted to flooding for the second time this year and puts a halt to the large numbers of cattle offered recently.

 

Throughput across all Victorian markets decreased 25 percent compared with last week, and supply was 57 percent lower than the same period last year. The major yarding reductions were recorded in Pakenham and Shepparton, which fell 69 percent and 40 percent, respectively, on last week.

 

Nationally, supply has followed the reduced trends, dropping by 10 percent compared with last week, and 34 percent below the same period last year. The majority of the eastern states have recorded some useful rain, and Victoria has had an immediate affect on supplies. Queensland dropped 20 percent, with Longreach and Toowoomba Elders receiving the largest falls.

 

Numbers in South Australia (SA), on the other hand, went against the trend of the eastern states, increasing 32 percent on the back of producers taking advantage of the substantially improved prices. Naracoorte's yarding almost trebled, as the first combined young and grown cattle market was held for a couple of months.

 

Competition has continued to improve on the reduced numbers of young cattle offered at MLA's NLRS reported markets. The recent falls of rain across many parts of the eastern states was the major factor behind increased buyer activity.

 

Nationally, the offering of vealers was down 24 percent compared with last week, while the yearling heifers offered fell 6 percent. However, the steer portion remained relatively unchanged, as producers took advantage of the renewed enthusiasm from buyers from all segments.

 

Renewed restocker activity has also assisted in placing pressure on processors and feeders. NSW, Queensland and Victoria registered significant price improvements on lower supplies. Despite increased numbers in SA, a dearer trend still resulted.

 

Nationally, vealer and yearling steers gained 2 cents and 1 cent, to average 165 cents and 161 cents/kg lwt, respectively. The feeder steer indicator gained 4 cents, to average 155 cents/kg lwt.

 

At the completion of Thursday's markets, the benchmark Eastern Young Cattle Indicator (EYCI) followed the national trend, to increase 8.75 cents on last week, and reach 295.5 cents/kg hundredweight (cwt).

 

Export categories have also registered price hikes despite tight supplies despite the increasing Australian dollar- which climbed further during the week - and the subsequent lower demand.

 

The supply of grown steers and heifers at MLA's NLRS reported saleyards fell 9 percent and more significantly, cows yarded were also 9 percent lower than last week.

 

Processor interest has increased, as a result of uncertainties over short-term supply, both direct to works and at physical markets - competition will further intensify should the season continue to make improvements. This has resulted in the national indicator for medium steers increasing 4 cents and Japan ox gaining 5 cents, to 156 cents and 168 cents/kg lwt, respectively. The medium cow indicator rose by 2 cents to finish at 119 cents/kg lwt.