ELD General Discussion, page-390

This is the thing. Normally they are self sufficient in beef cattle and have a percentage over that they can export, but they have had their own drought troubles over the last couple of years (while we have been relatively wet with La Nina).

During this time they have been running down their stocks due to lack of feed. Consequently US farmers have been rolling off their stock in large numbers and swamping their domestic market (and the international market) with beef, leading to lower farmgate prices internationally.

At some point the USA will need to rebuild their national herd like we were able to do over the last few years. When this happens they will be net breeders and buyers again and this could start to swing prices back up.

The worm could be turning for Australian cattle farmers. Our herd is at its largest for some time and with potential for dryer weather ahead with El Nino we could see increasing numbers going for sale in a world market that needs our product. Let's wait and see.