Australian Livestock Futures Decline

SYDNEY - Jun 3/05 - SNS -- Concern over the drought affecting large parts of Australia's agricultural regions resulted in a decline in cattle futures markets in that country, reports Meat and Livestock Australia (MLA).

"The continuing dry conditions across most parts of eastern Australia were again reflected this week in the cattle futures market, with most contracts settlement prices falling 7.75¢ to 12¢ on last week," MLA said.

The November contract was the exception rising 4.5¢. Contracts remained at premiums to the EYCI, as buyers and sellers continue to speculate on the timing of the next major rainfall. The July contract settled 12¢ lower this week, at 332¢/kg cwt, a premium of 12.75¢, while the September contract fell 8.5¢, to close at 345¢/kg cwt, a premium of 25.75¢.

The dry conditions have also placed downwards pressure on the EYCI, as the percentage of good quality young cattle continues to fall. The EYCI closed Thursday at 319.25¢/kg, 5.5¢ below last week and 10.5¢ below the same time last year.