Cattle and lamb market rallies peak
5/02/2010
After solid gains over January, cattle values appear to have stabilised for now, awaiting a lift in underlying demand for beef overseas.
This week, pent-up supply in NSW and Victoria following good feed over summer and last week’s Public Holiday pressured markets. This was effectively offset by the impact of excellent rains in Queensland and parts of NSW, and a fall in the A$, causing most indicator prices to remain close to last week’s rates.
Both the improved pasture and crop prospects and A$ fall, if sustained, are positives for the potential quality and price of cattle in coming months. However, a substantial market recovery still requires a lift in demand from either Japan or the US. Prices from both markets have improved since the low point late last year, but this mainly reflects the low supplies from Australia – exports to the US market in January were the lowest since January 1997.
Sheepmeat prices were also mixed this week, with a doubling in lamb yardings, led by numbers out of Victoria and SA, placing a cap on prices at record levels (for January). Demand remains robust from the local market, assisted by the Australia Day promotions, the Middle East and the US (as the trade gears up for the peak Easter demand).
|