Agro Perspectiva

Australia - Cattle market prices

05.03.2010 11:19 "Agro Perspectiva" (Kyiv) — National cattle throughput at MLA’s NLRS reported markets increased by 14.6% in February compared with the same period in 2009, however, 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 year-on-year increase in numbers was registered in Queensland, where supplies lifted 42%, while NSW increased 25% year-on-year. Despite the seasonal increase in supply and the ongoing high A$ 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. Medium weight C2 vealer steers to restockers averaged 185.5¢ in February, up from an average of 177.1¢/kg lwt in January. Lightweight yearling steers to the trade followed the dearer trend, with C2’s averaging 170.3¢, a jump of 6.9¢/kg lwt. The EYCI finished Thursday’s market at 338.75¢ — an increase of 36.25¢/kg cwt since the end of January. Young cattle were not the only categories registering gains. Grown cattle prices were also boosted by the increased competition. The heavy C4 grown steer price in February averaged 165.7¢, to realise a 4.1¢/kg lwt gain on the previous month. Medium weight D3 cows to processors gained 5.5¢ to average 121.1¢/kg lwt. Cattle indicators keep rising All cattle indicator prices have risen dramatically since the beginning of February. The Eastern States Young Cattle Indicator (EYCI) has increased from 312.25¢ at the start of the month to finish Thursday’s markets at 338.75¢/kg cwt. The 26.5¢/kg rise was driven by a significant improvement in seasonal conditions across the east of Australia. The rainfall has limited supply at many markets and also induced strong demand from restockers. The eastern states trade steer indicator finished Thursday at 178.2¢ compared with 167¢/kg lwt at the beginning of February. Medium steers followed the dearer trend, with the national indicator up 10¢ to finish the month at 166.1¢/kg lwt. Driven by competition between feeders and restockers, the feeder steer indicator rose to 180.2¢ up from 175.4¢/kg, this is despite prices coming back in the last week. Despite the persistently high A$, the US cow indicator rose 3.6¢ to finish Thursday’s markets at 130.1¢/kg. Jap ox prices also rose to end February at 175.8¢/kg. Over the hooks prices steady Over the hooks prices in NSW and Queensland remained firm to slightly dearer this week. Supply remains tight because of the good seasonal conditions. In the north of Queensland, wet weather continues to hamper the transport of livestock. Processors are confident that fine weather will allow operations to return to normal. In Victoria and SA, processors lifted their rates. The price rises can be attributed to the low supply of suitable young cattle and export categories, as well as the better prices being paid in physical markets.