Beef exports looking up
There are signs China could re-emerge as a key red meat market as the nation slowly emerges from its COVID-19 shutdown.
CATTLE prices have rallied, pushed along by store buyer activity across all weights and grades, putting pressure on feedlots and processors.
Numbers also tightened as the season progresses and paddock feed gets ahead of livestock numbers.
There was some good news within the latest monthly beef exports, with signs China is emerging as a dominant buyer of red meat.
Agents reported firm to dearer price trends at saleyards earlier this week, with the highlights being young cattle selling to restockers and another lift in the cow market.
The pick of the vealers and grain assisted yearling steers and heifers pushed above 400c/kg in the past week, reaching up to 425c/kg.
Plainer grass type domestic cattle tracked between 330c/kg to 390c/kg, with the better bred types strongly supported by restockers and feedlots.
At Wagga Wagga this week the main lines of good feeder steers sold from 380c/kg to 410c/kg to average close to 400c/kg lwt, according to reports from agents.
It put the bulk of sales between $1500 and $1700 per head.
The strength of the physical market in the past week, however, was restocker activity.
There were reports of light but well bred steer calves in the 200-280kg weight range making over 500c/kg, including at Wagga Wagga early this week where they peaked at 530c/kg lwt.
The general run of sales to restockers varied from 400c/kg to 480c/kg, depending on calf size, breed quality and number in a pen.
Cow prices strengthened, generally improving by 10c/kg to 20c/kg at southern saleyards in the past week.
That resulted in the best beef cows with shape and weight making over 300c/kg lwt.
At Wagga Wagga this week a run of good slaughter females were quoted at 280c/kg to 318c/kg lwt, to average over $1800 per head.
It comes as the latest export figures for the month of April show China has started to re-emerge as a dominant buyer of red meat again as it recovers from coronavirus.
Beef shipments from Australia to China in April reached 24,000 tonnes, up 30 per cent on a month ago and the highest sales since the record period of sales late last year.
Exports to Japan were also 8 per cent better than levels of a year ago, and overall the Australian industry was able to sell 92,457 tonnes of beef overseas during April — just 6500 tonnes less than a year ago — despite a raft of difficulties caused by the COVID-19 pandemic.
The one segment of the market to falter in April was the US, where shipments from Australia declined by 28 per cent or about 6000 tonnes on year-ago levels as coronavirus hits America.
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