Rabobank says beef farm gate and export prices are expected to firm in the second quarter, with demand from the US expected to pick and Australian supplies eventually tightening.

It says lower dairy prices and the ongoing dry conditions continue to see high numbers sent for processing.

The slaughter volumes in January were up 18 percent.

The bank says demand from the US continues to underpin strong export growth, with overall January shipments up 18 percent compared to last year.