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Thursday, August 25, 2016

Australian Cattle Prices Now at Unsustainable Levels

(Dow Jones) -- Cattle prices continued to rise through July and the general feeling now is that "levels are unsustainable and should start to decline as some heavier cattle flows into the market in spring," says Rabobank in a note. "These prices have been supported by feedlot and producer buying activity with processors -- facing lower global prices and a competitive retail environment -- being reluctant buyers." It says that many producers are purchasing cattle to utilize pasture and fodder crops after autumn and winter rain and the challenge will be that, when they are ready to sell them, the price per kilo won't have fallen so much that they won't make money.