Beef stays steady

BEEF cattle prices are expected to ease during 2018 before stabilising at a level higher than the five year average, according to Rural Bank’s Australian Cattle Annual Review.
Despite the eastern young cattle indicator averaging almost four percent lower than the record high cattle prices in 2016, domestic and export demand for beef remains strong.
Rural Bank general manager agribusiness Andrew Smith said with production expected to increase further in 2018, the short term price outlook will depend on rainfall levels.
“The recent revival in demand after October rain is likely to provide some support to prices for the remainder of this calendar year, and should ensure they settle approximately 30 percent higher than the five-year average,” he said.
“However, if average rainfall isn’t received over the coming weeks, we expect to see restocker demand ease and a potentially higher turn-off through the summer months, which will in turn put downward pressure on prices.”
To date, increased international production has kept prices in export markets relatively low compared to Australian cattle prices and should this continue as expected, further declines in Australian cattle prices are inevitable.
However, in the short term, restocker demand and stock retention should provide support for cattle prices for the remainder of 2017 before a likely decline in 2018.

High hopes: from left, John Quilford from Dalyston and Clive Hollins from Kilcunda caught up at the Leongatha VLE store sale last Thursday. Mr Quilford was just having a look and Mr Hollins had 13 “hopefully gold plated” steers to sell.

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Posted by Sarah Vella on Nov 28 2017. Filed under Rural News. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry