december 7, 2007

Cattle prices in Australia up as rain lifts demand

Cattle prices in Australia, the world's second largest beef exporter, rose for a second week after rain lifted demand from ranchers.

Queensland and New South Wales states, the nation's two largest beef producers, had between 50 millimeters (2 inches) and 100 millimeters of rain in some areas in the past week, according to the Bureau of Meteorology's Web site.

Sydney-based trade group Meat & Livestock Australia explained that the influence of rain and a positive change in the season spurred demand from ranchers.

Competition across Queensland and New South Wales markets picked up and had a positive impact on national indicator prices.

Australia's worst drought has forced ranchers to cull herds as feed supplies shrunk, leading to a 12 percent decline in cattle prices from this year's high.

The benchmark Eastern Young Cattle Indicator, which measures the price of beasts sold at auction in the country's east, rose 2.3 percent, to AUD3.0625 (US$2.69) a kilogramme this week.

Prices this year peaked at AUD3.475 (US$3.04) a kilogramme on March 15.