September 11, 2006

 

Prices stablise in Australian cattle market

 

 

Beef cattle prices in Australian saleyards settled mixed this week, stabilising after a period of losses as producer confidence strengthened, Meat & Livestock Australia Ltd (MLA) reported Friday (Sep 8).

 

However, restocker demand for young cattle only held steady, as feed grain prices are sharply higher than a year ago, leading producers to be more hesitant when purchasing feedmeal, MLA said.

 

However, there was renewed buying in southern Queensland, where paddock feeder steer prices fell, as lotfeeders continue to have large numbers of cattle on feed, it said.

 

Most abattoirs are not operating at full capacity, with Teys Bros Pty. Ltd's plant shutting until next March due to lack of cattle supply and labour shortage.

 

Current prices, which are well down on year-earlier levels, reflect the poorer quality of cattle offered this year and a poor seasonal outlook, MLA said.

 

However, the crucial export markets has been strong, mostly due to a lack of competition from the US in South Korea and Japan.

 

Still, the annual value of beef exports last fiscal year ended Jun 30 dipped 7 percent due to a drop in volume.

 

The Japanese market remained stable and there were no major changes in buying trends, despite the recommencement of trade with the US more than a month ago, MLA said.

 

Prices of Australian beef in Japan dipped slightly but were still above year-ago levels.

 

In the US, some imported manufacturing beef prices rose as some domestic lean meat prices started to rise, MLA said.

 

Meanwhile, Australian beef exports to South Korea reached a monthly record high of 15,811 tonnes in August, up 29 percent on-year, MLA said.

 

Contributing to the strong trade was increased demand for quality beef for Thanksgiving, low stock levels and the continued absence of US beef from the market.