Cattle prices have recovered modestly since the low point at the beginning of February, on the back of:

• The low $A,

• Early signs of a buying recovery in Japan and Korea,

• Higher US prices, and

• A recommencement of Russian buying (principally from South America).

However, this week saw a significant downward correction in prices for cows and Japan ox, led by Queensland, with the easing occurring in both saleyards and over-the-hooks prices.

Two factors that appear to have sparked the cattle price reversal are the sudden rise in the $A in the past fortnight (up nearly 8pc) and the onset of drier conditions.

This has allowed northern cattle movements to get into swing and has enticed those southern producers still in drought, to cull young cattle earlier, for fear of another poor autumn.

The southern concerns would have been reinforced by BOM’s forecast for another dry autumn in Victoria and SA. (See separate story).

Lamb markets:

In contrast, lamb markets keep powering on, with further significant price rises this week, led by finished categories and by markets in Victoria and WA.

While the peak buying period for Australian heavy lambs for Easter in the US has now passed, demand in the Middle East remains strong and lambs (unlike cattle) appear to have been benefitting fully from the period of the low $A.