Demand softens as processors shun high rates
Cattle prices have swayed between stronger and weaker trends, but demand is well below its peak.
CATTLE prices swayed between stronger and weaker trends at saleyards over the past seven days.
Animal quality, and the roll-up of buyers at different selling centres, played a role in price outcomes, with some impressive winter results posted.
But the overall picture to emerge on Monday was softening demand, particularly from domestic processors, who appeared unwilling to chase the market to some of the high price levels recorded at various times in the past month.
Price quotes at Pakenham earlier this week were lower, with the National Livestock Reporting Service reporting price corrections across many weights and grades sold at Wagga Wagga in the Riverina.
The pick of the B-muscled European genetic vealers sold to 455c/kg at Pakenham, but the overall average across the best steer calves slipped to 428c/kg to be quoted as 15 cents lower than a week ago.
At the same sale vealer heifers sold to 413c/kg and yearling steers to 420c/kg in a market that lacked the punch of late June.
Across the border in NSW there were significant price corrections reported at Wagga Wagga, led by the heavy heifers. which sold to processors at 355c/kg-386c/kg to average 371c/kg.
It marked a fall of 24 cents or nearly $100 on a 400kg heifer.
However, feedlot and restocker demand was still robust and these categories at Wagga Wagga eased by much smaller margins.
The NLRS said the main run of 324 heavy feeder steers, 400kg plus, sold to 430c/kg and averaged 403c/kg – a correction of 9 cents. The medium feeder steers (330-400kg) were firm, at 412c/kg.
Restockers still paid to 475c/kg, with well-bred but light steer calves to the paddock still averaging close to 450c/kg lwt.
There were price corrections for most classes of store cattle on the AuctionsPlus system last week. Hardest hit were breeding females, with the average price of cows and calves on the internet selling system easing by more than $200, and PTIC females by $150. But quality variations can also sway results from week to week.
The cow market has been mixed in the past week, with some strong sales above 300c/kg at many centres, but weaker results on plainer types at times. The national average for cows on Monday was listed at 272c/kg, a correction of 7 cents on week ago levels.
The grinding beef market in the US has cooled.
Export steers have also eased, with the national saleyard price coming back to 366c/kg in early trading this week.
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