The difference between the cash price for Victorian cows for the US market and the Eastern Young Cattle Indicator at the beginning of 2009 was stronger than usual, despite an early turn off of dairy cows in southern regions due to the slump in global dairy prices, Meat and Livestock Australia reports.
MLA says the strength in difference was largely due to the popularity of manufacturing beef overseas as consumers opted for cheaper beef items.
More recently, the basis has remained higher than the five-year average, although it is currently below year ago levels.
Victorian cow prices continue to hover between the 250¢ and 260¢ mark (carcase weight), with fluctuations in the dollar and plainer quality cows being yarded capping any further price inclines.
The lower EYCI though is offsetting basis to weaken currently.
Seasonally, basis tends to strengthen in April when female cattle turn off falls, before weakening again into winter (corresponding with the dairy cull).
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