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 Cattle prices still feeling the pressure, but lambs steady 

Cattle prices still feeling the pressure, but lambs steady

06 Nov, 2009 04:21 PM
YOUNG cattle and cow prices slipped again this week, due to the deteriorating seasonal conditions and poor demand from the export feeding sector – both feedlots and grass-fatteners.

Despite some patchy rain, turnoff rose in both Queensland and NSW, pushing national yardings 12Ppc above last year's.

Falls would have been greater if not for rises in Queensland prices, although these look likely to prove temporary, unless widespread rains are received over coming weeks.

All national cattle indicators eased between 2¢ and 4¢/kg lwt this week.

The main factors impacting sales continue to be the high $A, weak processor demand and seasonal conditions.

The high $A has largely impacted grown cattle prices, but this has also flowed on to all other categories. The deteriorating seasonal conditions across many regions have resulted in producers offloading stock.

At the completion of Thursday’s markets, the EYCI was down 4.5¢/kg on last week's. to 300.25¢/kg cwt - the lowest point since February.

Nationally, yearling steers fell 4¢ to 164¢/kg and vealer steers eased 1¢ to 177¢/kg lwt. Feeders also lost 4¢ to 160¢/kg.

The only indicator close to year-ago levels was that of the vealer steer category, with the other indicators currently down between 4pc and 14pc year-on-year.

Despite the negative factors in the market, grown cattle held on surprisingly well this week. Japan ox and cows eased 2¢ and 3¢ to 160¢/kg and 116¢/kg, respectively.

Lamb price steady:

There was little change in finished trade and heavy lamb prices this week, with the market appearing to have reached its seasonal low, at around 380-390¢/kg cwt.

Eastern states trade lamb (18-22kg cwt) prices have fallen 16pc across MLA’s NLRS reported markets since the peak registered in June.

Prices, however, remain historically high, despite 2009 monthly yardings exceeding the five year average.

Average monthly prices in 2009 for trade lambs peaked at 499¢/kg in June and during October recorded an average price of 418¢/kg cwt.

This is 10-20pc above last year's, reflecting strong local and export demand for lamb, despite the high $A.

Supplies of lighter lambs were tight again this week, and with good feeder and restocker demand, prices remain 30-40pc higher than last year's.

Record mutton prices continue:

Low sheep numbers, both on farms and coming forward, together with strong Middle East demand for live sheep and mutton, are maintaining record mutton sheep prices – at around double those of a year ago.

Prices are highest in those states that have recently liquidated flocks the fastest, WA, SA and Tasmania, with prices in these states 113pc, 121pc and 90pc higher than last year's, respectively.

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MULTIMEDIA
06 November, 2009
POLL
Q: Should the Nationals and Liberals dissolve the Federal Coalition?

Yes
(47.1%)

No
(46%)

Undecided
(6.8%)

Total Votes: 526
Poll Date: 01 November, 2009

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