Prime cattle price corrections

The prime cattle market has shown signs of slowing after weeks of consistently rising prices. Jenny Kelly reports.

Black gold: The prime cattle market showed signs of slowing down last week off recent highs, with prices cheaper at most major saleyards.

AFTER consistent price rises, the prime cattle market is showing signs of a correction or slowdown from recent highs.

Prices earlier this week were cheaper at all major saleyards, with some categories such as cows recording big falls of up to 30c/kg as processor demand waned.

It follows reports that JBS Swift has closed its flagship Dinmore processing plant in Queensland this week due to difficulty sourcing enough slaughter cattle at viable prices.

Several market reports noted the absence of some regular meatwork and feedlot companies.

There were also reports of restockers being more selective with their money and not being prepared to pay such extreme rates for young steers and heifers.

On the export front, grinding beef prices into the US remained buoyant in the past week but the market is being viewed as very volatile, and possibly on a downward trend.

The latest report from Steiner Consulting points to cheaper beef moving into the US from South American countries and Mexico.

Steiner said there had been dramatic swings for some beef products and US buyers were “proceeding with caution’’.

Cow prices led the Australian cattle market higher in the past month.

But on Monday demand was at much weaker levels.

At Wagga Wagga in the Riverina 700 cows sold at rates 25-30c/kg cheaper.

The NLRS said only a few cows sold above 300c/kg to a top of 310c/kg lwt, with most sales from 250c/kg to 290c/kg.

A 30 cent correction on a 600kg cow amounts to a $180 fall on a week ago.

Cows were also cheaper at Pakenham in Gippsland.

The quote was 10c-20c cheaper, with most sales also from 250c/kg to 290c/kg with only standout beef cows above 300c/kg to a top of 320c/kg.

Grown steers followed the trend by losing about 10c/kg earlier this week, and the price corrections continued to cascade down into the lighter and younger weight categories.

At Pakenham the best bullocks weighing over 600kg sold from 360c/kg to 382c/kg lwt.

In the trade run, the highest price recorded on Monday for vealers selling to domestic processors was still 440c/kg as the best calves held their value.

Young steers sized between 280-330kg and selling to restockers were 12c/kg cheaper at Wagga Wagga.

Due to the extreme rates of a week ago they still averaged a healthy 442c/kg or $1360 per head.