AUSTRALIA's beef producers can look forward to better prices this year, improving on the miserable conclusion to 2009.
And lamb and mutton prices will continue to put a spring in the step of prime-lamb producers.
This is the message from Meat and Livestock Australia's annual projections for the year ahead.
Currency and export-demand will continue to affect both beef and sheepmeat markets - with different results.
With the Australian dollar forecast to remain about US90c for the duration of the year and the economies of countries including the US and Japan expected to improve, beef will slowly regain lost ground.
MLA economist Tim McRae described the year ahead as "cautiously optimistic".
"We expect a modest to small improvement in cattle prices for 2010," he said.
The sheep and lamb industry will continue to boom this year, on the back of increased demand and the declining flock which is tipped to reach 69.9 million midway through this year.
"Saleyard prices are expected to exceed 2009 prices," MLA's sheepmeat analyst Kara Tighe said.
Lamb production will increase 2 per cent this year, despite the flock falling to the lowest level in 105 years.
However, despite an enthusiastic January revival in wool prices which defied the strength of the Australian dollar, the market has since stalled.
At the close of trading last week the AWEX Eastern Market Indicator was 918c/kg greasy, after peaking at 942c/kg on January 22.
Exporters labelled the latest price-fall as a "correction", blaming exchange rate variations and Chinese New Year celebrations.
Superfine producers are losing patience as they see their their premiums over middle-microns shrink.
Cavendish superfine producer Peter Henry said prices were still 200-300c short of being profitable.
The current premium for an 18-micron fleece over a middle-micron or 21-micron fleece is only 19.5 per cent and well short of covering the lighter weight associated with the finer fleeces.
For middle-micron producers, whose heavier-cutting sheep are cutting more than $40 a head and enjoying good returns for the sheepmeat, there has been little to complain about.
Meanwhile, grain growers have little to smile about with wheat prices remaining relatively flat at $200 a tonne, delivered to port. The prices are about $100 a tonne lower than this time last year.
