US cattle futures have rallied, largely due to the weaker currency adding some value on the back of the Trump surprise.
Over the longer term, there’s little certainty about how Trump’s pre-election talk about trade barriers will impact the US market. But there is a bit of silver lining for Australian producers.
If the US moves to a more protectionist stance, it will make American beef more expensive in our major high value markets. Demand for Australian beef might actually increase. But issues in the US economy will see our currency appreciate, bad for cattle prices.
Cattle yardings increased last week, but it was largely due to a full week of sales in Victoria. Young cattle prices, and most indicators for that matter, fell. But the rate of decline eased, with the EYCI closing at 655.25¢/kg cwt.