Beyond the Saleyards: Livestock prices weaken as demand falls
National cattle and sheep prices saw weakness this week as supply continues to outweigh demand from processors and feedlots.
However, general food price inflation in the supermarkets is leading to reduced consumption of red meat, which could be expected to have an impact on the price of livestock going forward.
Australian livestock markets are nervous after an outbreak of foot-and-mouth disease in Indonesia, which is one of our closest trading partners.
Our domestic industry has steadfast traceability, but outbreaks like this are a reminder that continual improvement is necessary to protect our livestock industry.
The Australian dollar is trading below 70 US¢, which is the lowest level in two years.
The weakness has been caused by reports of a weakening Chinese economy due to the lockdowns imposed yet again in China.
The depreciating Australian currency is helping our exports retain market share, and many Australian banks are predicting this currency weakness until Chinese growth starts to improve.
Processor and feedlot market bids at the start of the week (¢/kg or $/head):
● WA market indices: medium weight yearling steers 568¢, weaner heifers 522¢.
● East coast processor prices: MSA: steers 790¢, heifers 785¢. Cows 730¢. Jap Ox: steers 760¢, Bulls 580¢.
● Queensland feedlots: Black Angus: 635¢, Black Angus British X: 615¢, Wagyu X Angus: POA.
● NSW feedlots (steers): Feeder steers: 0-2T 510¢, Feeder heifers: 0-2T 430¢, Bulls 600¢.
To contact buyers and for more price information please login to the Agora Livestock Markets app or online.
Rob Kelly is the founder and managing director of Agora Livestock, a free service with the latest sheep, cattle and goat price grids in one easy-to-use app.
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