Australia-This weeks livestock trade (Australia 12 hours ahead of UK) and prices.

Monday’s livestock summary

23/02/2009

The tough economic environment has taken its toll on rates for cattle direct to slaughter. Since the beginning of the New Year, prices have fallen across all categories in NSW. Over-the-hooks prices for yearlings have deteriorated 18¢ and cow prices by 17¢, since the beginning of January, while Japan ox has fallen a substantial 32¢/kg cwt.

Although cow prices have eased since the New Year, largely due to the liquidation of dairy cows and absence of Russian buying, processors have been actively pursuing manufactured beef lines. This has contributed to a more stable price for cows and bulls compared to other categories.

Due to the economic situation, processors and feeders have been forced to lower rates, however, the recent rain has restricted consignments selling direct to works and rates have improved.

The widespread rain across western, northern and eastern regions of Australia has not only improved prospects for many producers, but it has also instigated a welcomed price improvement with the Eastern Young Cattle Indicator (EYCI) rising 12¢ on last week, finishing Thursday at 307.5¢/kg cwt – the highest level for the month.

This week, mutton supply declined 2% on last week at MLA’s NLRS reported saleyards. The majority of those offered were medium weight ewes purchased by processors.

Mutton quality has been reasonable although plainer drafts are becoming more apparent at physical markets. Generally, mutton prices have been dearer, with increasing competition from buyers to secure supplies, as they anticipate a shortfall in the coming months. The eastern state mutton indicator finished Friday at 191¢, 13¢/kg cwt higher than a fortnight ago.

For the second week in a row, lamb prices at MLA’s NLRS Western Australian reported saleyards topped at 500¢/kg cwt for lambs. This strong result has also been evident for mutton, with a number of sales over 250¢/kg cwt. This has been a result of the strong demand from both processors and the live export sector. Lamb quality is slipping.

The eastern states sheep and lamb indicators were dearer than last fortnight. Merino lamb gained 26¢ to 337¢, while light lamb was 10¢ higher at 361¢/kg cwt. Restocking lamb slipped 2¢ to end at 378¢/kg cwt. Trade and heavy lamb was 21¢ higher to end at 418¢ and 433¢/kg cwt respectively.