No news is possibly good news in relation to the suspended live trade in Australian F1 to Japan. High Japanese beef prices reflect shortages of local slaughter cattle, so there may be some economic incentive to re-open the trade once biosecurity issues are resolved.
Optimism is evident at the Australian end, with at least one major export house planning a debut in this segment, which Elders has now exited. However, availability of suitable F1 cattle in Australia is also tight, with most cattle committed forward.
Mind-boggling increases in the Japanese Black calf market have slowed after 10 months of consecutive increase. The May national average price of FB Black steer calves was 857,924 JPY, heifers 749,149 JPY. Lack of calf numbers in the market continues, so the price can be expected to take off again in the near future.
Japanese Black May-16 (Price = JPY)
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Japanese Red May-16 (Price = JPY)
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F1 (Wagyu X Holstein) CALF May-16
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Tokyo Carcass Market – to May 2016
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The overall carcass market has remained consistently strong since the New Year, driven by severe shortages of feeder cattle.
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