Wet season keeps prices high as supply dries up
The cattle market has been fed more energy, thanks to the continuous rain in the north.
CONTINUAL rain has ensured the cattle market will remain lively heading into November.
Good price gains of more than 10 cents a kilogram were recorded at key saleyards on Monday as supplies in northern regions dropped after heavy rain swept across parts of NSW and Queensland late last week.
Rain-affected sales included Wagga Wagga in the NSW Riverina where cattle numbers dropped back to just 1460 head, while further north at Tamworth supplies halved to 720 head.
Victorian saleyards in the south of the state also had lower numbers on Monday, with Pakenham in Gippsland down to 721 cattle. However, most of the price action was centred on the north, with dearer trends recorded across the major NSW centres.
The big price mover at Wagga Wagga was heavy feeder steers and heifers weighing over 400kg liveweight. The steer run sold to 443c and averaged 419c to improve by 10c per kilogram liveweight, while the heifer portion gained 15c to average 404c/kg.
In dollar per head terms this added an extra $40 to $70 per head on those cattle compared to a week ago, with the NLRS reporting a steer average of $1882 and heifers $1720.
Competition also intensified among restockers for suitable young cattle to take back to the paddock, pushing the Eastern Young Cattle Indicator to another record of 801c/kg carcass weight.
By state, the data shows NSW has the hottest results for young cattle. According to Meat and Livestock Australia:
FEEDER steers in NSW are sitting at an average of 409c/kg lwt, compared with 397c in Victoria;
MEDIUM weight steers are at 384c/kg in NSW, against an average result of 368c in Victoria; and
SLAUGHTER cows are at 294c in NSW, to be just slightly ahead of the south on 293c/kg.
The cow market has remained impressive, with the best heavy beef females continuing to sell above 300c/kg lwt in the past week.
At Pakenham on Monday high yielding cows were one of the best performers, making from 315c to a top of 340c/kg to export processors.
But other results out of Pakenham were softer as southern meat buyers stopped pushing the market. Bullocks at this sale were quoted as 10c cheaper, easing back to an average of 383c/kg lwt.
Supply remains the key driver of the market, and the pressure on numbers is most evident in the north.
The latest slaughter figures show cattle production in Queensland continuing to trend at low levels.
MORE
BEEF RECORDS SMASHED AS YOUNG CATTLE PRICES SOAR
Eastern market booming
See how the restocker movement on the east coast is having an affect on cattle in the west.
Only way is up for cattle rate
Cattle prices continue to rise week after week. But producers are beginning to wonder, how high can prices go? Here’s what the industry experts have to say.