We expect growth in the global economy to remain subdued out to 2026.
Insight
April 27, 2015
In focus: Beef Market Update – April 2015
Cattle prices began to ease in February and continued to fall until late March, before trending upward in early April in line with higher 90CL export prices to the US. Overall, the Eastern Young Cattle Indicator fell 4.6% (AUD) month on month to 424.7 AUc/kg.
Key points:
- Cattle prices began to ease in February and continued to fall until late March, before trending upward in early April in line with higher 90CL export prices to the US. Overall, the Eastern Young Cattle Indicator fell 4.6% (AUD) month on month to 424.7 AUc/kg.
- The beef industry fundamentals for 2015 remain strong. Demand for protein in Asia is likely to grow in the medium term, and the recently signed free trade agreements with Japan and China will improve Australia’s competitive position, especially when combined with a falling AUD. We forecast the AUD to fall to 74 US cents by the end of 2015.
- While prices remain much higher than the same time last year, A lack of rainfall remains the biggest challenge for the Australian beef industry. Drought remains an ongoing risk in Q2 and beyond.
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