CATTLE producers will be asking Santa for rain, a recovery in export demand and a falling Aussie dollar for 2010, as cattle prices have ended the year 15 per cent below a year ago and averaged 5pc lower than 2008 for the year.
Meat and Livestock Australia reports that while 2009 initially brought a patchy improvement in seasonal conditions, the majority of Queensland and NSW have rapidly fallen back into severe drought.
With the northern monsoon commencing, the dollar back below 90USc and the prospect of tighter supplies in the New Year, prices could start 2010 a little higher.
However, processors have indicated that, given the current depressed export demand and prices, they will cut shifts or remain closed for longer rather than operate at a loss – effectively capping the price response to any widespread rains.
In contrast, prime lamb producers have much to celebrate going into 2010, with strong demand and record average prices for 2009, up 13 per cent to 26pc on last year.
Prices are expected to remain high into the New Year, as demand builds overseas and supplies tighten.
The stand out in 2009 has been mutton sheep prices, which have also reached record levels, averaging 40pc higher for the year, and finished 60pc higher year-on-year.
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