Australian cattle prices are expected to continue softening for the rest of March, with beef exports forecast to remain high as the US rebuilds its herd this is limiting global supplies, according to Australia's Rural Bank.
Australian cattle prices recorded a marginal fall during February and sharp drops at the start of March. Meat and Livestock Australia's (MLA) Eastern Young Cattle Indicator started February at 667A¢/kg and finished the month at 629A¢/kg, dropping further to 576A¢/kg on 14 March. The Argus northern feeder steer index began February at 379A¢/kg and ended the month at 357A¢/kg. Prices are expected to continue to soften on the back of forecast dry weather in key producing regions and firm domestic supplies, according to Rural Bank.
Beef exports continued to climb during February because of rising demand from key markets such as Japan and the US, with elevated domestic slaughter numbers and beef production creating ample supplies from Australia. Rural Bank expects that exports will continue to lift with the US' herd rebuild limiting global supplies. Australian slaughter numbers during February hit a high of 128,347 head for the week ending 23 February, a rise from 106,958 for the same month in 2023, according to MLA data.
Australia's February beef exports recorded the highest level for the same month since 2019. The 93,834t of exports was 33.3pc higher than a year earlier, with shipments to the US recording growth of 5.1pc from the previous month, according to Australia's Department of Agriculture Fisheries and Forestry.
Australia's Bureau of Meteorology is forecasting lower than average rainfall for March-May. This will support increased cattle numbers, as producers look to maintain herd numbers and not overstock to prepare for a potential dry winter.
