Top cattle buys beyond the hype
Beyond the headlines, some record prices being claimed for cattle are not readily available across the marketplace and state discrepancies are evident.
AMID the record prices being reported for cattle, how much of the really big money is out there and readily obtainable?
Consider this. In recent days there have been headlines about a record of $5580 being set for cows and calves sold on the AuctionsPlus internet selling platform.
Yes it is correct.
But go beyond the headline and it was for four young Speckle Park cows with spring-drop calves.
Without taking anything away from those involved in the transaction, four head of a niche breed is not really representative of wider industry values.
The price range quoted for all cows and calves sold on AuctionsPlus late last week was $1160 to $5580 for an average of $3137.
That price range would have you cracking champagne at the top end, to celebrating with a warm glass of cordial at the other.
However, this article wasn’t prompted by that particular sale. Rather by a conversation with an agent who said expectations around price were now so high that some people were actually being “underwhelmed” with results.
“Cattle are making exceptional money, but not everyone is getting a record result,’’ he said. “There is always a range of different prices at any given sale.’’
With all the hype surrounding stock at present and the focus on new market highs, it is easy to overlook the fact there is still a considerable price spread for all categories based not only on quality, breed and weight but also on region and seasonal factors.
Highlighting this are the overall price results for the main classes of cattle sold on AuctionsPlus last week:
PTIC cows $970 to $2900 to average $2143;
PTIC heifers $1650 to $3050 to average $2291;
YOUNG heifers weighing between 200kg to 280kg, 346c/kg to 660c/kg to average 514c/kg liveweight;
YOUNG steers of the same size, 346c/kg to 652c/kg to average 539c/kg lwt.
Broadly, the bottom ends of the cattle being sold are worth only half that of the top lots.
The other factor exaggerating price spreads is the season and supply and demand intensity in the north compared with the south.
The graph shows the average price trend for well-bred yearling steers (classified as C-muscle shape, so taking out the plainer crossbred types) sold at the major prime markets covered by the National Livestock Reporting Service.
The data is broken down by state.
Queensland prices have jumped ahead of the other key cattle states of NSW, Victoria and South Australia as the promise of a wet monsoon season fuels more restocking confidence and demand in the north.
There is now a 100c/kg price gap between similar grade yearling steers being sold in Victoria compared with Queensland.
The latest price point for the first week of November was an average of 728c/kg carcass weight for these yearling steers sold in Victoria, compared to 827c/kg in Queensland.
The data in the graph goes back to 2016, and it shows how price results do shift between the various states, mainly dependent on seasonal conditions and supply.
Those figures also mirror the type of young cattle that go into making up the Eastern Young Cattle Indicator price results.
And again, while the EYCI did hit an official record of 822c/kg carcass weight last week, in reality young cattle prices at saleyards in Victoria are not even close to that level.
Meat and Livestock Australia released a breakdown of the figures on the day the EYCI made headlines.
The results are telling, again showing the divide in markets from north to south:
QUEENSLAND 856c/kg cwt.
NSW 803c/kg.
VICTORIA 754c/kg cwt.
It shows how record prices need to be interpreted, as headlines often don’t tell the full story.
A further insight into what is driving the market is data around who — restocker, feedlot or processor — is buying young cattle, based on MLA figures.
Using yearling heifers as an example, in Queensland 54 per cent of yearling heifers sold at prime markets during October went to restockers, with just 18 per cent going to meat processors.
The average weight across these heifers was 286kg, with many more bigger lines of store calves available in that state.
As a comparison, in Victoria just 9 per cent of heifers in prime markets went to restockers and 80 per cent sold to meat processors.
The average weight of these heifers was 424kg, showing how the season is producing heavier prime stock in the south this spring.
MORE
SUPPLY AND SEASONAL CHANGES DETERMINE TRENDS
‘No one knew it was coming’: Tongala cow abattoir shuts
The livestock industry and local community have reacted to Greenham’s closure of its Tongala cow processing plant.
Wool producer rapt with market revival
Prices for Steven Wishart’s wool clip are getting towards “a fairer return than where it has been”, the Inverleigh sheep and wool producer says. This is what he is planning.