11 November 2010

2 minute read

Oceania

As a result, potential co-product values lifted to their highest levels in two years, improving 16 per cent to $204/head for a Japanese market type grassfed steer, up 16 per cent to $166/head for Korean steers and 15 per cent to $119/head for US cows (MLA’s Monthly Co-products Monitor).

Prices continue to be supported by tighter cattle supplies this year, which have been induced by wet weather, with adult cattle slaughter back four per cent against the previous year for the period January – September (ABS). Although slaughter numbers appear to have improved in October, offal exports were still back slightly for the month, and this tighter supply is helping to sustain prices.

Offal prices also received a boost from strong Russian demand, which was behind a 48 per cent increase in liver prices ($1.57/kg) and a 23 per cent lift in hearts ($1.55/kg). Higher prices then flowed through to other markets, with Japanese and halal offal’s generally averaging higher too.

Tallow prices continued to rise in October, with less than per cent FFA tallow averaging nine per cent higher at $826/tonne ex works. Although this partly resulted from the lower cattle slaughter, the main driver was the sharply higher palm oil prices which continue to move up on surging global commodity and energy prices. This has been compounded in November by US government policy, and tallow prices can be expected to be higher this month.

Although generally flat over the month, hide prices remain well clear of a year earlier. Prices are being supported by lower kills and recovering demand in the leather industry, although this is being offset to a degree by the high A$. Queensland green hides (221-280kg) averaged $24 ex works in October – 36 per cent higher than a year earlier (MLA’s NLRS).

TheCattleSite News Desk