Beef on the way down

BEEF prices have begun to fall as supply continues to increase and rain evades eastern parts of the country.
Meat and Livestock Australia’s midyear cattle update has predicted prices will continue to fall for the rest of the year.
In June, eastern state slaughter numbers for supply crossed above year ago levels for the first time in three years and the MLA predicts this will continue for the rest of the year.
Prices also crossed year ago levels going in the other direction, however MLA market information manager Ben Thomas said prices will remain above the five year average for the foreseeable future.
Mr Thomas said for the past three years, producers selling at the same time each year have received better returns than the year before, but that has now changed.
“Prices are now lower than a year ago and production higher as the country’s herd continues to rebuild,” he said.
“We knew the beef market turning point was coming. Now we know when, with lower process across the board.”
Landmark agent Terry Ginnane said while quality affected prices at last Thursday’s store sale, prices at Wednesday’s prime market held firm.
“Numbers will stay low for a little while. Parts of south New South Wales and eastern Gippsland haven’t had any rain,” he said.
“Rain in those areas would tighten the market up a bit more.”
Mr Ginnane said abattoirs in southern NSW and South Australia are already getting an influx of fat cattle from the northern states.

Check out: Adam Williams and his dad Peter Williams were at the VLE Leongatha store sale last Thursday, “getting a feel for the market”.

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Posted by Sarah Vella on Jul 25 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