Summer flooding returns to eastern states

03 February 2012

In what has become a common occurrence in recent years, heavy summer rain has again fallen across large swathes of Queensland and northern NSW in the past two weeks, with extensive flooding resulting. In response to the wet conditions and impact on supplies, prices across all cattle categories improved this week, with the EYCI finishing the week higher, at 394.5¢/kg cwt.

As witnessed throughout 2010 and 2011, the location and severity of the flooding will result in significant disruption to cattle markets, with many producers expected to again be constrained in moving stock for an extended period. This week saw both sales cancelled in Roma, while numbers at other southern Queensland markets were back considerably. Queensland yardings at MLA’s NLRS reported markets totalled 5,681 head this week, back 52% on last week and 73% on the corresponding week last year.

Along with the rise in young cattle prices this week, the national average heavy steer price increased 4¢, to 334¢/kg cwt, while cows kicked 12¢, to average 300¢/kg cwt. While those regions not experiencing flooding in Queensland and northern NSW can probably count their blessing, the saturated landscape will have many keeping an attentive eye on the remainder of the wet season.

The return to a full selling week saw lamb offerings jump 83% at reported markets, with prices easing across the heavy categories. Trade lambs slipped 12¢ on last week, to average 497¢/kg cwt, while heavy lambs were back 4¢, to 481¢/kg cwt.

With a tighter cattle supply expected throughout February, given the extent of the recent falls, it will be interesting to see how the market reacts as demand remains tentative. Undoubtedly, the big influence for exports continues to be the A$, which traded over 107US¢ this week.

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