February 25, 2008

Australian young cattle supply increases on high competition

Australia's supply of young cattle increased 2 percent this week due to heightened competition among buyers, especially processors and re-stockers, with prices lifting accordingly.

Australian reports indicated that re-stockers have been very active again, and trade steer prices lifted 2¢ to 181¢, 6¢/kilogramme dearer than last year. Feeder steers and the Japan ox indicators increased 3¢/kg each. The US cow indicator rose 1¢/kg, to 127¢/kg.

At the completion of Tuesday's sales, the Eastern Young Cattle Indicator (EYCI) recorded a new high for 2008, at 347.75¢/kg cwt, an increase of 10.75¢/kg cwt above last week.

The jump was driven by medium weight C2 vealer steers, with prices reaching a top of 238¢/kg, an increase of 9¢/kg lwt. Medium weight C2 vealer heifers at Scone registered an increase of 11¢, averaging 206¢/kg lwt to slaughter.

The EYCI reached 346.5¢/kg cwt at the completion of Thursday's sales, 5¢ above last week and 23.25¢/kg on-year.

Victorian cattle yardings fell 5 percent this week. With the reduced yarding, demand grew further, lifting young cattle prices this week. Yearling steers and heifers dominated the young cattle offered.

At the start of the week, all saleyards reported a drop in throughput, with Pakenham and Camperdown recording the largest decreases of 30 percent and 24 percent, respectively. However, yardings increased later in the week.