April 4, 2011

 

Global cattle prices rise as Australian cattle prices soar

 

 

As Australian cattle producers welcome the recent kick to cattle prices, prices across the other major beef producing nations have also risen into new highs.

 

The EYCI (Eastern Young Cattle Indicator) also hit an all-time high last week. The EYCI hit US$4.245/kg cwt on Monday (Apr 4), spurred by reduced numbers out of Queensland in the previous week due to widespread rain.

 

Underpinned by recovering global beef demand and reduced global supplies, cattle prices in major exporting nations, such as Brazil, Australia and US have all risen significantly so far in 2011, and are well above year ago levels. Representative of this, US cattle futures prices reached record highs during the week, fuelled by a low US$ and speculation for increased imported beef demand from Japan.

 

Cattle prices in Brazil are also significantly above the same period in 2010, with a robust domestic market keeping more beef at home and further tightening available supplies for the export arena.

 

A rise in numbers across Queensland this week, with selling returning to Roma, had a mixed influence on prices, with heavy steers nationally averaging US$3.76/kg cwt-steady on last week.

 

The lamb market continued to hover close to or above US$6 this week, with the main change in prices for heavy lambs, which eased US$0.18, to US$5.98-still US$1.27 above the corresponding week last year. The national mutton indicator averaged US$4.70/kg cwt.