Food and agribusiness banking specialist Rabobank is tipping there may be signs of relief to the congested supply chains affecting beef and cattle prices.
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Rabobank's Angus Gidley-Baird said Australia's cattle markets were being affected by high production numbers, compounded by already large volumes of meat in congested supply chains.
Cattle slaughter numbers have not reached the same near-record highs as sheep and goat, but they have tracked 16 per cent up year-on-year for the second quarter.
"Although it's still a way off where we were in 2018 and 2019, we have had the highest female second quarter slaughter numbers since 2020 (up 26 per cent year on year), which indicates that maybe we've moved through the whole herd-rebuild phase and producers are starting to make decisions about how many cattle they want on the ground at the moment," he said.
But, Mr Gidley-Baird said rather than cattle-herd numbers, it was high volumes of stock already in the system and lack of "capacity" among processors that was having the biggest influence on the beef market.
Likewise, global protein inventory levels remain high at the moment.
"In Japan - one of our largest markets - beef-in-storage figures are 18pc higher than the five-year average, albeit starting to level out," he said.
"Congestion in the supply chain, with large amounts of stock already in inventory, is one of the main things holding up the system at the moment for the beef market."
He said if we start to see volumes move through the system a lot quicker, it will give processors a degree of relief that there is a home for their beef to go to and they'll start adding extra shifts to increase capacity.
"Factors such as the lead up to Chinese Lunar New Year in early 2024, as well as a contraction in US beef production and exports, give promise beef supplies may soon begin to move more quickly through the global supply chain," he said.
New lamb sale start time at Yass saleyard
South Eastern Livestock Exchange at Yass has moved the start time for the weekly prime lamb and sheep sale.
Instead of starting at 11am on Wednesday, the sale will now begin at 10am.
Vale Grafton agent Peter McCrohon
Grafton stock and station agent Peter McCrohon died on Thursday, September 21, aged 71.
Peter was a true gentleman and a top agent. He was well known as a great judge of livestock.
His funeral was at St Mary's Catholic Church, Grafton, on Tuesday, October 3.
- The First Draft takes a look at some of the weekly highlights across the markets. If you have a story tip, email markets@theland.com.au
