Cattle still feeling the pressure
6/11/2009
Young cattle and cow prices slipped again this week, due to the deteriorating seasonal conditions and poor demand from the export feeding sector – both feedlots and grass-fatteners. Despite some patchy rain, turnoff rose in both Queensland and NSW, pushing national yardings 12% above last year.
Falls would have been greater if not for rises in Queensland prices, although these look likely to prove temporary, unless widespread rains are received over coming weeks.
There was little change in finished trade and heavy lamb prices this week, with the market appearing to have reached its seasonal low, at around 380-390¢/kg cwt. This is 10-20% above last year, reflecting strong local and export demand for lamb, despite the high A$. Supplies of lighter lambs are tight, and with good feeder and restocker demand, prices remain 30-40% higher than last year.
Low sheep number, both on farms and coming forward, together with strong Middle East demand for live sheep and mutton, is maintaining record mutton sheep prices – at around double those of a year ago. Prices are highest in those states that have recently liquidated flocks the fastest, WA, SA and Tasmania, with prices in these states 113%, 121% and 90% higher than last year, respectively.
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