Indiana Grain Company, LLC

Posted: 03/15/10

By: tomgrisafi

We at Indiana Grain read an interesting piece in Business Week covering how cattle prices in Australia, the world’s second-largest beef exporter, gained to the highest in 17 months after wet weather and floods reduced livestock supply in Queensland state, according to an industry group.

The Eastern Young Cattle Indicator, which measures auction prices in the nation’s east, rose substantially compared with a week earlier. Prices have now reached the highest level since October 2008.

“Exceptional rain” fell in Queensland, central Australia and northern New South Wales during the last week of February and the first week of March, the Bureau of Meteorology said on March 5.

Some livestock sales were canceled this week as rivers flooded and weight limits were introduced on damaged roads, Meat & Livestock said. Rain has also already revived pastures and boosted demand from producers rebuilding herds after drought.

“The improved seasonal conditions have given producers the confidence to hang onto young cattle for longer and sell them in better condition,” the industry group said.

Source: Bloomberg, Business Week

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