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Insights January 2020

6 January 2020 |Cattle
Cattle image

Insights January 2020

6 January 2020 |Cattle
The January update provides an analysis of production and pricing trends for Australian cattle producers. It provides producers with a timely overview of current trends and an outlook for the coming months.

Overview

  • Saleyard numbers are expected to remain under pressure as a result of bushfire disruption.
  • Eastern Young Cattle Indicator remains in a holding pattern despite strong demand for global beef.

Supply is likely to remain under pressure in the coming weeks and months driven by the loss of stock and feed in grazing regions of New South Wales and Victoria following recent and widespread bushfires. This could support higher
prices as restockers will need to compete for a smaller number of cattle. January sales to date have been disrupted by bushfires, which also kept several buyers away from the saleyards.

Hay prices are increasing in response to limited supply. Drought affected producers in Queensland and New South Wales are competing with southern counterparts for new season hay bringing forward a scenario of a supply
shortage.

The 90CL U.S beef import price continued to trade at record levels in December, reflecting the heightened level of global beef demand driven by African Swine Fever. In normal market conditions the Eastern Young Cattle
Indicator (EYCI) would track the movement of the 90CL price. However, supply of cattle in Australia is tight and is expected to remain that way for the next few months in the lead up to autumn. If seasonal conditions prove favourable in autumn the Australian market will likely seea price correction to more accurately reflect global beefdemand.

      

Source: Meat and livestock Australia

 

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