March 2, 2010

Australia cattle output up; prices not dampened by supply

Australia cattle throughput at saleyards increased by 14.6% in February compared to the same period in 2009, but numbers remains 5% lower on the five-year average.

The fall in cattle supply on the previous five-year average can be attributed to significant rainfall across the eastern states, as producers withhold stock and transport remains difficult.

The largest on-year increase in numbers was registered in Queensland, where supplies lifted 42%, while New South Wales increased 25% on-year.

Despite the seasonal increase in supply and the ongoing high Australian dollar throughout February, prices generally continued to rise.

The driving factor was increased demand from restockers looking to take advantage of the improvements in the season.

The Eastern Young Cattle Indicator (EYCI) finished last Thursday's (Feb 25) market at 338.75¢/kg – an increase of 36.25¢/kg (carcase weight) since the end of January.