Australia-The meat and cattle trade.

AUSRALIA-MEAT AND CATTLE TRADE.

The average number of cattle slaughtered on a weekly basis in February climbed 39% on the previous month and was14% higher than the corresponding month last year. However, despite the higher average weekly slaughter figure, weekly numbers of cattle processed over the first three weeks of February progressively declined.

Despite total yardings slipping over the past week, feedlots purchased 4% more cattle in physical markets than last week. NSW and Victoria saw numbers climb 6% and 13% respectively, while in other states, similar numbers to last week were purchased. The rising throughput can largely be attributed to feedlots purchasing cattle with the intention of offloading them in late June and throughout July.

Cattle restocker activity at MLA’s NLRS reported saleyards in February declined 2% from January and 6% from the corresponding month in 2008. Despite northern NSW and Queensland receiving heavy rainfall during the month, flooding restricted stock flows to and from saleyards. Furthermore, the majority of saleyards in southern areas witnessed extreme heat and very little rainfall, with restocker interest declining in line with reduced feed availability, compared to January.

The average number of lambs slaughtered on a weekly basis during February increased in NSW, Victoria and SA, compared to January 2009 and February 2008. Slaughter rates increased due to the high prices offered at physical markets and also direct to works. The extreme climatic conditions experienced over the past month, particularly in Victoria and SA, encouraged producers to offload.

All eastern states sheep and lamb indicators rose this week compared to last week. This was primarily due to a fall in yardings, down 19% for lambs and 17% for sheep over the past week at reported saleyards, and stronger competition for the small number of good quality lambs.

Last week, 1% of the sheep offering at reported physical markets consisted of lightweights returning to the paddock, while 30% were purchased by processors. The vast majority of the medium and heavy weights were purchased by processors across the eastern states. In WA, though, live exporters have been competing fiercely and secured 9% of the total mutton offering in that state.