Cattle prices down, supply up as rains fail

Beef cattle prices in Australian saleyards fell this week, weighed down by a 10 per cent increase in supply and lower quality, marketing operator Meat and Livestock Australia Ltd reported yesterday.

Price drops were greatest for young cattle and while the quality of beasts remained good overall, dry seasonal conditions in some areas had led to some deterioration in pastures, prompting producers to offload stock before the arrival of cooler winter weather, MLA's a weekly market review says. The outlook for rain in the next two weeks was poor and supplies were expected to keep rising, further pressuring saleyard prices, it said.

Most regular buyers were present at saleyards all week, but competition softened as the week progressed, with many processors securing adequate numbers through direct sales to meatworks.

The rolling seven-day benchmark Eastern Young Cattle Indicator fell seven cents in the week ended Thursday to settle at $3.19 a kilogram estimated carcass weight, down 5c year on year.

Grown cattle yardings increased but prices were steady to slightly cheaper, with competition for cows starting to wane, it said.