Cattle Prices Expected to be Lower in 2012
AUSTRALIA - According to the latest National Australia Bank (NAB) Rural Commodities Wrap, the Eastern Young Cattle Indicator (EYCI) is still expected to decline during 2012, albeit by less than the 5.6% forecast earlier in the year.
4 April 2012
1 minute read
NAB forecasts the EYCI to fall 3.6 per cent year-on-year, which would result in an average of 382¢/kg cwt for 2012.
Underpinning the expected decline in average cattle prices is the predicted rise in Australian beef production, which is forecast to increase 0.6 per cent in 2011-12 and a further 2.1 per cent in 2012-13. The report also highlights the strength of the A$ as a challenge to prices.
However, helping to maintain prices is the expectation that global beef production will contract for the fifth consecutive year in 2012, according to USDA forecasts. This tight supply is likely to push beef prices higher in Australia’s key competitor markets, notably the US and South America.
While cattle prices are expected to ease during 2012, NAB predicts an improvement in lamb prices from current levels. Historically tight global supplies are the underlying factor in the expected price rise.
TheCattleSite News Desk
