MLA says this reflects especially, the impact of the autumn cull of young cattle and cows, now in full swing, and an export market still flat.

A higher $A this week and weak demand from Japan and Korea has led export processors to reduce shifts.

Cattle yardings bounced back 12pc from the rain-reduced numbers last week, to be 6pc higher than last year's at this time, led by higher year-on-year numbers in Queensland and NSW.

In contrast, sheep and lamb markets remain buoyant (30pc to 40pc higher than last year's).

Further modest rises in prices this week confirmed the positive trend, despite a jump in yardings.

Strong live export and processor buying pushed the national mutton sheep saleyard indicator to a record 248¢/kg cwt this week, beating the previous high in September 2003.

MLA says a tight global demand/supply balance for sheepmeat continues to see the full benefit of a relatively low $A (despite recent rises) reflected in Australian sheep and lamb prices.

This is in stark contrast to cattle, where:

• Trade disruptions,

• Efforts to run down stocks,

• The US return to Korea and

• Lower demand for higher priced cuts have seen none of the benefit flow back to Australian exporters, except for the manufacturing trade to the US.