Prices retreat from their peaks

Buyers are finding it hard to sell higher-value cuts amid ongoing coronavirus restrictions while US demand continues to fall.

Downward trend: Cattle prices in the past week have retreated from recent highs. Yea Picture: Chloe Smith

CATTLE prices have started to show signs of retreating from record highs, with the weekend rain having little positive effect earlier this week.

All the major saleyard indicators, with the exception of restocking calves going back to the paddock, eased in the past week.

The latest figures on Monday night were:

HEAVY steers 357.7c/kg liveweight – down 13c/kg on a week earlier;

YEARLING steers to processors 387.7c/kg – back 16c/kg;

FEEDER steers 394c/kg – 10c/kg lower; and

COWS 270c/kg for a mild correction of 2c/kg.

On the demand side, price rates for grinding beef in the US have continued to erode with the price point for 90 chemical lean cow beef (90 per cent red meat and 10 per cent fat blend) falling below 700c/kg in Australian dollar terms.

As a comparison, at the start of June this grade of beef into the US was tracking above 800c/kg.

Domestically buyers are still reporting difficult times for red meat, particularly the sale of higher-value cuts due to ongoing coronavirus restrictions disrupting food service and restaurants.

On the supply side, the cattle kill remains much lower than year-ago levels but has trended higher in certain states recently.

The latest slaughter figures show a step-up in production across Queensland during the first week of July, with a throughput of 67,640 – an 8 per cent increase on the previous seven days.

Reports suggest many northern areas are starting to sell cattle off early sown crops and pasture that benefited from the good autumn break.

In Victoria the best price reported for tradeweight cattle earlier this week was 453c/kg for a single highly muscled steer vealer sold at Pakenham.

But National Livestock Reporting Service data shows only limited sales above 410c/kg to domestic processors, with the bulk of sales from 360c-400c/kg depending on breed type, sex and quality.

Any well bred calves suiting restocking orders were less affected by the weakening trend, with restockers still prepared to pay above 450c/kg for select lines. It was still another strong trading week on the Auctions­Plus internet system, with cows and calves and PTIC breeding females improving in price.

AuctionsPlus recorded an average of $2357 for cows and calves, the top pen at $2950; while pregnancy-tested-in-calf females averaged just shy of $2000. This sort of money could come under pressure if the slaughter cow price continues to soften.

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