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Wet Weather Causing Problems

27 September 2010
Meat & Livestock Australia

AUSTRALIA - The eastern states cattle market pushed higher last week, as heavy rain across central and southern Queensland again disrupted stock movements and saw some markets cancelled, with Queensland yardings back 68 per cent on the previous week.

The rain reduced supplies in recent weeks, if not recent months across the eastern states continue to be the driving force behind prices, even as the A$ pushed above 95US¢ this week.

While the rain and excellent season in the east has been a welcome change for producers, the sustained rise in the A$ continues to cast a large shadow for exporters. With forecasts for the A$ to move higher during the remainder of 2010, with even talk of parity, trading conditions for exporters are likely to remain very tough.

The EYCI this week reached another 2010 high of 373.50¢, with heavy steers averaging 338¢/kg cwt nationally and 333¢/kg cwt in Queensland.

Swift Australia says problems in moving cattle led to production cuts at its abattoirs in Rockhampton, Townsville and Dinmore and Teys Brothers says its central Queensland plants at Rockhampton and Biloela only stayed open for three days last week, while the Beenleigh plant operated for four days.

Swift Australia's John Berry says the cuts are frustrating.

"It's been quite extensive these rains, the difficulty in getting cattle mustered and getting cattle to slaughter, there's obviously challenges on both sides, the producer and the processor and the worker," he said.

"It's out of our control and the producers are no doubt frustrated as are we as processors."

TheCattleSite News Desk



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