Red meat boom: Aussie cattle continue to increase in value

From young cattle to heavy steers and weaner calves, cattle prices continue to rise. And there’s one reason why prices are on the up and up.

Paul Sheedy, Ballarat store cattle sale, Friday November 20 2020. He sold this pen of eight Angus heifers for 390c/kg. Picture: Madeleine Stuchbery.

YOUNG cattle, heavy steers, and weaner calves have continued to increase in value, as the herd rebuild and strong season drive restocker demand, particularly from NSW and Queensland.

The heavy steer indicator is also sitting at 376c/kg, almost 72 cents stronger than same time last year.

A Meat and Livestock Australia report showed cattle over the hooks indicators have lifted in value across Queensland, NSW and Victoria, and the Eastern Young Cattle Indicator has continued to march upwards, hitting a new record last week of 829.25c/kg, while store prices in saleyards across the east coast remain hot.

But in early sales this week some categories eased, notably prime heavy export pens.

While young cattle prices remain bullish, analysts say the easing on heavy export cattle could be due to some processors preparing for end-of-year shutdowns.

MLA market analyst Stuart Bull said the overarching dynamic affecting the lofty cattle prices was tight supply.

“There’s obviously a few nuances between younger and older cattle,” he said. “Looking at young cattle, throughout the last few months we have seen particularly restockers being dominant, followed by feeders and processors, but restockers paying those price premiums.

“There’s demand for light cattle, particularly weighing 200-280kg. That's’s due to profit margins down the line getting tighter and tighter.”

Mr Bull said saleyards in Dalby and Roma last week made up about 45 per cent of EYCI-eligible cattle.

“Stronger premiums are being paid, and again we’ve seen the feeder job has been very strong this year … with feedlots continuing to have cattle on feed,” he said.

At both Mortlake and Ballarat saleyards last week, huge numbers of cattle were yarded, quickly setting a baseline steer price of 400c/kg.

Pens of young weaner calves nudged 600c/kg, with steer calves at 500c-580c/kg.

HF Richardson agent Bernie Nevins said the strength of weaner calves at the Ballarat store cattle sale was “unbelievable”.

“The steer wearers … are up to 580c/kg on some pens, and many pens are above 500c/kg,” Mr Nevins said. “It’s a case of feed. There are people who’ve waited for four months thinking (prices) will drop off. But the job hasn’t dropped off, it’s just got dearer.”

Australian Bureau of Statistics data show female cattle slaughter rates are yet to dip below the 47 per cent threshold rate indicative of a herd recovery phase.

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