Australie-Cattle markets this week.
Cattle market wrap
20/03/2009
Demand and supply supports Japan ox
Rates for Japan ox have witnessed a steady rise since February. The indicator has jumped 12¢ since early February to settle at 167¢/kg lwt on Thursday afternoon, a 6¢/kg improvement on the corresponding week last year though 3¢ lower than last week.
With the clearing of stocks of imported product and the commencement of buying for Japan’s Golden Week, demand for Japan ox has advanced, influencing the dearer price trend. Tighter supplies of Japan ox have also supported prices, with yardings at MLA’s NLRS reported saleyards down 4% since the beginning of February. The better season in northern NSW and Queensland has allowed producers to hold onto available stock as feed sources remain high. The recent low prices have also induced producers to hold onto stock until prices improve. In northern Queensland, extensive flood waters and damage to roads have restricted the movement of cattle onto the market, contributing to the tighter numbers.
Victoria and SA, on the other hand, have endured another tough season. Evidently cattle suitable for Japan ox specifications have been harder to source, with the majority of throughput being made up of young cattle and cows. With export demand improving, and the tighter numbers, rising prices were inevitable for Japan ox grades.
Rates rise for Victorian feeders
Feeder cattle prices in Victoria have increased 11¢ from the beginning of March, finishing this week at 171¢/kg lwt. The two main driving forces behind the rising prices have been lower numbers, along with the recent kick in spot market buying.
Total Victoria throughput has fallen 14% since the beginning of autumn, with a 47% reduction in cattle purchased by lot feeders. The significant decline in feeders has been influenced by the poor season, which has restricted suitable grades, while improved restocker demand has placed increased competition on feeder lines. Better demand for grainfed cattle and added interest from processors, along with the slowly improving overseas outlook, have been the basis for the strengthening spot market.
Grainfed cattle prices rise
Rates for grainfed cattle direct to slaughter in Queensland have increased significantly since the beginning of March. Prices received for grainfed yearlings have jumped by up to 16¢ and have averaged 11¢/kg cwt higher since the beginning of autumn.
The greatest lift in rates has been evident on heavyweight grainfed yearling steers, with prices ranging from 300¢ to 325¢, to average 16¢/kg cwt dearer than recorded at the beginning of March.
Coinciding with the dearer trend for grainfed yearlings, 100 day grainfed steers have witnessed a significant jump in prices. From the beginning of the month, direct to slaughter rates have surged 20¢, with two and four tooths making 320¢ to 340¢/kg cwt.
A rise in the cost of feeder cattle, low grainfed output and early signs of a recovery in demand from Japan and Korea are behind the rise.