Cattle Producers Welcome Forecast Rain
AUSTRALIA - The widespread rain forecast from this weekend across NSW, SA and Victoria, could be in the nick of time for southern cattle producers and cattle markets. This forecast, combined with a disrupted trading week due to ANZAC day, saw young cattle prices jump, while export categories continued their decline.
27 April 2007
1 minute read
If the forecast rains fall over the next two weeks, it would be good timing for the planting of winter grains, offering the prospect of some relief from the high cost of feed grain by spring. A significant autumn break during May would also allow for pasture growth in most areas prior to winter, providing May is mild. This would probably tighten cattle supplies, especially across the young cattle and cow categories.
With feed and water supplies reaching critically low levels over southern areas this autumn, cattle producers have increased turnoff rates over the past few months. This has added to the decline in cattle prices triggered by weak export demand from Korean and Japan and the sharp rise in the A$.
With increased supplies and lower restocker, feedlot and processor demand, the Eastern Young Cattle Indicator (EYCI) has declined 16% since mid-March, to finish Monday at a low of 291¢/kg cwt. The forecast of rain contributed to the EYCI jumping 6% over three days, to finish Thursday at 307.75¢/kg cwt – 14% below the same time last year.
TheCattleSite News Desk
