Global Factors Impacting Local Markets
AUSTRALIA - In most instances a falling A$ would see prices and sentiment across livestock markets respond in a spirited manner. However, 2012 seems to be proving an exception, with the prolonged European and global economic uncertainty overshadowing any positives that could result from the improved price competitiveness of Australian red meat.
1 June 2012
1 minute read
Indeed, the revitalised concern around the global economic situation has placed a huge amount of uncertainty across many markets. As has been seen on several occasions since 2008, when the global economy gets the wobbles, overseas demand and prices take a significant hit, as importers and end users wait to see the response from consumers. In such a situation, while the lower A$ is welcome, it largely acts as a shock-absorber, rather than delivering the much sought after price benefit.
National indicators were higher across almost all cattle categories this week, with last week’s rain and tighter numbers in Queensland helping to lift the market. While the EYCI was largely steady for the week, finishing Thursday at 365.25¢/kg cwt, the national heavy steer (500-600kg C4) indicator jumped 21¢, to 340¢/kg cwt, boosted by higher prices in Queensland, NSW and Victoria.
The lamb market continues to feel the weight of additional supplies going direct to processors, with average weekly eastern states slaughter for May up 10 per cent year-on-year, and year-to-date processing 18 per cent higher.
In response to the increased supplies, only restocker and light lamb prices increased this week – most likely the result of the well-received rain over the past week. Heavy lambs fell 5¢, to 396¢/kg cwt, while trade lambs eased 7¢, to 417¢/kg cwt. Mutton slipped 6¢, to average 293¢/kg cwt.
TheCattleSite News Desk
