Newsletter for the week ending 19 November 2004

Can it Last

The cattle market continues to be very strong for all types of cattle.  The Eastern Young Cattle Indicator is at 375.5 c/kg compared to 315 c/kg at the same time last year.  Can it last?

There are a couple of reasons why current price levels for cull cows and bulls may not hold.

Exporters are currently scrambling to fill the last of their quota to the US market for this year.  Once these are filled combined with the recent rise in the Australian dollar against the US dollar there may be some drop off in prices for bulls and cows.

However the export market to Japan remains very strong with the USA still effectively shut out of that market.

One of Australias largest exporters to Japan, Nippon Meat Packers Inc., expects to nearly double exports to Japan in the second half of the Japanese fiscal year.  The processor expects to send 60,000 tonnes of beef in the six months ending 31 March compared to 35,000 tonnes in the corresponding year earlier period.

While the US and Japan recently agreed on guidelines for the export of US beef, with Japan only accepting product with birth records until a July 2005 review.  It is predicted that this review will be the turning point with only minimal product being exported up to this point.

Meat and Livestock Australia market analysist Peter Weekes believes that the demand levels from Japan will continue at least until mid 2005.

The USA (and Canada) have paid a high price for not having a full traceability system in place.

Strong Demand at Ben Darroch

A large crowd including 48 registered buyers pushed bulls to a top price of $5,000 and females to a top of $4,000 twice at the Ben Darroch Production Sale in Victoria.  The sale cleared 32 of the 45 females offered and 12 of the 19 bulls.

I understand the females averaged around $2,800 and the bulls around $3,500 but will confirm next week.

Prices for individual lots will go onto the web as soon as we can get them.

$1,300 For Cull Cows!

Tony and Jill Whistler sold 10 cull cows through the Wodonga market last week.

All ten cows sold for 179.2 c/kg with the heaviest five averaging 726kg to come back at $1,301 each.  The ten cows averaged 682kg to make $1,222.  That is a very good return for cows that had just had their autumn born calves weaned off them.

Nowra Sale Topper

Brian Harrison called to report a top sale for one of his bull clients.

A nine month old Limousin X vealer weighing 375kg made 248 c/kg or $930 at Nowra saleyards.

The calf and its mum did it all on the Kikuyu grass through the winter without supplementation according to Brian, who can't understand why everyone doesn't use Limousin bulls.

More Wodonga Sale Toppers

The top five pens of Limousin steer vealers at Wodonga last week were Limousin crosses making from 210 to 215 c/kg.  The highest priced pen weighed 415kg @ 212 c/kg to make $880 for the vendor JPH Smith of Urana NSW.

It was the same story for heifer vealers with the top four pens being Limo X.  Mr Smith again topped with seven heifers weighing 366kg at 204.2 c/kg or $748.

Former ALBS member Col Watson topped the heavy steer market with 9 Limousin X steers weighing 604kg @ 195.6 c/kg or $1,181.

Yours in Limousin

Alex McDonald