December 11, 2003

 

 

Australian Cattle Market: Prices Rise, Demand Picks Up

 

Cattle prices in Australian saleyards rose this week as larger offerings "were met by increased demand, particularly from lotfeeders and exporters," marketing concern Meat & Livestock Australia Ltd. reported Friday.

 

Prices for export categories rose this week due to the increase of stock and, again, strong demand, it said in a weekly review of the cattle market.

 

In part, the higher prices reflect the higher quality beasts now being offered, having fattened on spring pastures, it said.

 

Cow prices have risen in southern markets, reflecting the spirited competition between processors and an increased supply of beasts yielding relatively high percentages of meat, it said.

 

Almost two-thirds of Australian beef production is exported, making it a major world beef exporter and making export demand an important driver of prices in domestic saleyards.

 

In the U.S., the major export market by volume, the MLA said the beef import market eased as lower demand and rescued supplies resulted in lighter volumes traded.

 

Australian offerings mostly fell, it said, with the discount for Uruguay beef normally below Australian product widened this week in an effort to move product, it said.

 

In the U.S., Australian frozen 95 chemical lean (CL) bull beef held unchanged at US$1.15 a pound, including carriage, insurance and freight, still up from US$0.98/lb a year ago.

 

Frozen 90CL cow beef fell 3 cents to US$1.10/lb, still up from US$0.95 a year ago.

 

The free on board prices in Australia for these products fell 4 cents and 13 cents to A$3.08 a kilogram estimated dressed weight and A$2.93/kg respectively, free alongside.

 

In Australian saleyards, a national price indicator for cows suitable for the U.S. trade closed the week 3 cents higher at A$2.63 a kilogram estimated carcass weight, up from A$2.14 a year ago.

 

Export prices to Japan, the second biggest export market by volume, slipped this week, weighed down by inventories.

 

In recent weeks, wholesalers have had difficulty in passing high prices on to customers, with end users increasingly resistant to price rises in Japan's current deflationary environment, it said.

 

"Consequently, demand for beef hasn't been as strong as expected," it said.

 

Prices in Japan for Australian chilled grassfed fullsets fell 4 cents this week to US$1.81/pound, including carriage and freight, still up from the year- ago level of US$1.54/lb.

 

The estimated free on board price for this product in Australia lost 15 cents to A$4.99 this week, down from A$5.58/kg free alongside a year ago.

 

In Australia, a national price indicator for the type of beast suitable for Japan closed the week 2 cents higher at A$3.05/kg, up from A$2.72/kg a year ago.

 

Meanwhile, a national price indicator for the type of beast suitable for the South Korean trade added 4 cents to close the week at A$3.00/kg, up from A$2.56/kg a year go.

 

A national price indicator for domestic trade steers added 6 cents to A$3.23/kg, up from the year-ago level of A$2.58/kg.

 

 

Source: Meat & Livestock Australia