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The week in review 10/02/12
- February is shaping up to be a very interesting month for the Australian cattle market, with the negative influence of the high A$ and sluggish export demand currently being balanced by the reduced supplies following the widespread rain and flooding. As such, the cattle market was largely steady this week, with the EYCI down 1.5¢ on last week, at 393¢/kg cwt, while heavy steers edged higher.
- The A$ trading around 108US¢ this week has only added to the very sluggish start to the export year, with competition from the US in North Asia only accentuating the issue.
- While cattle numbers are anticipated to increase in the coming weeks, demand will also need to improve for current prices to be sustained. However, if the A$ continues to trade close to all-time high levels, the improvement in export demand may need to be swift to counterbalance the A$ influence and higher supplies.
- Lamb prices softened again this week, as numbers started to flow into markets across the southern states, with total yardings up 5% for the week. Heavy lambs this week dropped 30¢, to 451¢/kg cwt, while trade lambs contracted 28¢, to 469¢/kg cwt. The only category to register an increase this week was Merino lambs (16-22kg) up 9¢, to 450¢/kg cwt.
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