Markets

Young cattle prices ease on supply lift

Beef Central, 10/09/2012

National saleyard price indicators for young cattle recorded declines last week as supplies increased with the first week of spring.

National cattle yardings rose from 43,835 head the previous week to 52,997 last week, with Queensland and New South Wales posting the largest increases in volume.

After holding firm during a reduction in supply the previous week, the Eastern Young Cattle Indicator fell by 8c/kg as supplies for the week to close at 368.25c/kg last Friday.

The vealer steer indicator eased 5c to 379¢/kg cwt and yearling steers fell 9c to 376c/kg kg cwt.

Prices improved slightly for heavier categories with medium steers increasing by 2c to settle on 335c/kg, heavy steers lifting slightly to average 352c/kg cwt and medium cows also lifting to 281c/kg.

The feeder steer indicator closed down 1c to 200c/kg.

With strong expectations that supply with accelerated into this spring, the demand outlook remains the big unknown.

MLA said that while the recent easing in the A$ was welcome for exporters, many exports markets continued to struggle, which was being reflected in lower prices for product, rather than diminished volumes of exports.

MLA added that the news that Japan is set to lift its age restrictions for US beef before the end of the year would place further pressure on the already tough conditions facing Australian exporters in the market.

On the supply front, MLA notes that the timing of the timing of the spring break will have a big impact on available supplies in southern markets.

In the north, the steady flow of well finished cattle in Queensland is expected to be maintained, with many lines running at heavier weights than in previous years.

HAVE YOUR SAY

Your email address will not be published.

Your comment will not appear until it has been moderated.
Contributions that contravene our Comments Policy will not be published.

Comments

Get Beef Central's news headlines emailed to you -
FREE!