Price split emerges in cattle market

The varied season across Victoria is being reflected in cattle markets as prices become increasingly polarised based on cattle weight and condition.

In two minds: The cattle market has started to split into price tiers based around weight and condition.

SPRING may have sprung but with only parts of the country enjoying green feed and the prospect of a decent harvest, the cattle market has started to split into price tiers based around weight and condition.

The EYCI, which is the main price indicator for young cattle sold by auction, slipped below 500c/kg carcass weight on Monday.

Discounting for lightweight steers and heifers stripped value off the EYCI as NSW and Queensland farmers, facing another bleak spring, pushed more young and unfinished cattle into saleyards.

The EYCI has fallen by 36c/kg in the past four weeks and is now aligning closely with the downward price trajectory of last September.

In contrast, heavy slaughter cattle are holding their value thanks to robust export orders for beef and the limited number of animals presenting in genuine prime condition at saleyards.

Heavy beef cows still sold to 284c/kg at Pakenham in Gippsland this week, while quality bullocks over 600kg sold to 369c/kg and averaged 355c/kg at the same market to return up to $2750.

It comes as prices for manufacturing beef in the US hit high levels when converted to Australian dollar terms.

Late last week prices for 90 chemical lean (90pc red meat and 10pc fat blend used to make hamburgers) grinding beef into the US hit 721c/kg Australian, the best price return for four years and a massive 145c/kg above year-ago levels.

Southern NSW agent Jarrod Slattery from Landmark Wagga Wagga said price distinctions based on cattle weight and condition were clearly on show at the area’s prime market on Monday where nearly 5000 cattle were sold.

“Anything with weight and suitable to slaughter is holding up pretty well, as are the better runs of feeder cattle,’’ Mr Slattery said.

“But there is just nowhere to go with all those store cattle coming in — people just don’t have the confidence to handle young and lightweight cattle.’’