Beef extends bullish winter run
All classes of cattle are in demand at saleyards around the country, but there are signs of processors starting to be selective.
THE beef market continued its stellar run into the second month of winter, with further gains for top class slaughter cattle in the past week.
Domestic processors paid up to 463c/kg for B-muscle vealers sold in Victorian saleyards earlier this week, with the pick of the grown steers also pushing above 400c/kg.
National saleyard price indicators for all classes of cattle are now tracking 60c-120c/kg higher than 12 months ago when the drought prevailed.
There were signs at some centres the processing sector was feeling the pressure.
At Wagga Wagga earlier this week the National Livestock Reporting Service reported cheaper rates for a bigger yarding of trade cattle, and said meat buyers didn’t seem prepared to chase the market.
“Trade steers sold 27c cheaper, with buyers reluctant to push against feedlot competition,’’ the NLRS noted.
To achieve prices over 400c/kg for slaughter cattle quality has to be very good, in terms of breeding and condition.
Most of the higher price rates being recorded for steers and heifers are for animals off grain or crops.
Southern markets appeared to have the best levels of demand for young cattle earlier this week.
At Pakenham the quote for vealers and yearlings suiting trade orders was 10c-20c/kg dearer, with all the B-muscle milk calves averaging well over 400c/kg — the best animals making in excess of 440c/kg.
Grown steers also sold to stronger demand, with a limited run of 32 bullocks weighing over 600kg selling from 392c-406c/kg to average 400c/kg or $2700, based on NLRS figures.
On the supply side, cattle numbers are still ticking along as the high prices encourage animals to be sold.
The latest available slaughter figures (to June 19) had the Eastern States cattle kill at 123,000, 2 per cent higher than the week prior.
The figure is 20 per cent down on a year ago, when drought conditions ruled.
The latest news from the export market showed a softening in price for grinding beef into the US as the American cattle kill recovers from COVID-19 disruptions due to infection rates among workers at abattoirs.
The cow market was mixed in early trading this week, with cheaper prices at some centres.
The overall saleyard indicator for medium cows was listed at 279c/kg lwt on Monday night, to be 85c higher than a year ago.
At Wagga Wagga the best heavy beef cows sold from 297c-345c to average 312c/kg.
At Pakenham on the same day the main run of good beef cows were firm to a few cents cheaper, reaching a top of 328c/kg.
There was one outrider sale of a heavily muscled B-score cow that sold for 340c/kg.
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