The relationship between the Eastern Young Cattle Indicator and the Queensland Japan ox indicator has a weaker correlation than that of other indicators, Meat and Livestock Australia reports.
It warns that care needs to be taken when analysing the basis for Queensland Japan ox.
Basis for Queensland Japan ox started 2009 higher than the five-year average, due largely to the weaker EYCI.
Basis though started to weaken considerably from March, as Queensland Japan ox prices have been considerably lower.
For the past four weeks, basis has moved between -29.75¢/kg and -41¢/kg.
While basis seasonally tends to weaken from autumn through to winter, basis is currently considerably lower than the five-year average.
This is due to subdued beef demand from Japan depressing Japan ox livestock prices, while the EYCI has been steadily increasing over the past month.
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