A glance at Meat and Livestock Australia’s Market Insider on Thursday would be enough to come to the conclusion that we are headed back to 2013 price levels.
US herd expansion is continuing, at 102.6 million head. This is a six-year high, and up seven million from the 2014 low. There’s also beef export prices to the US. This week they fell 21¢/kg in our terms. It took three months for the 90CL to gain 50¢ in our terms. It takes just two weeks to lose it as issues in Asian markets, and likely stronger supplies drive the heavy fall. The rising Aussie dollar has a bit to do with weaker export prices. All this has contributed to weaker grid prices in Queensland.
And while Queensland and northern NSW have a 50:50 chance of more than the median rainfall, the dry will continue for southern NSW and much of Victoria.