MP Evans has removed the "for sale" sign from its Woodlands cattle farm in Australia, after rains which have revived animal prices and allowed record stocking levels.

Philip Fletcher, the MP Evans managing directors, said that the palm oil and beef group was no longer "actively" marketing the 30,000-hectare property, after a year-long quest failed to find a buyer.

"This is not a firesale. We do not have to sell it," Mr Fletcher told Agrimoney.com.

Prospects for the loss-making enterprise had been boosted by the rains which had blessed much of Australia this year, improving pasture quality and allowing MP Evans to raise the stocking level on Woodlands to 8,000 head. The operation turned over 1,250 cattle last year.

Lag factor

This improved outlook extended to the value of the Woodlands site, in Queensland, which looked likely to follow the fortunes of its ranching higher. The property was currently worth about Aus$35m, excluding machinery and livestock.

"In our experience, land values lag behind operations," Mr Fletcher said.

"Interest in properties will come later."

Prices of cattle, as measured by the benchmark Eastern Young Cattle Indicator, have already jumped by one quarter to Aus$3.49 per kilogramme over the last six months, and looked poised to rise further, according to Rabobank.

"Prices for cattle should continue to rise over upcoming months, with a seasonal tightening of supply in southern Australia combining with a lower Australian dollar," the bank said in a report on Thursday.

'Very good price'

Mr Fletcher added that MP Evans was satisfied with palm oil prices despite their fall in Kuala Lumpur on Friday to their lowest for seven months.

"The price has come down but it is still a very good price," he said, noting that a value of some $800 a tonne in Rotterdam offered the group a margin of roughly $500 a tonne.

"You would have been very happy getting that price three years ago."

August palm oil finished 24 ringgit lower at 2,386 ringgit a tonne in Kuala Lumpur, the weakest finish for a benchmark contract since August.

MP Evans shares closed down 1.1% at 320p in London.