Beef prices surge, but export lamb struggles

Feedlots and export processors are paying over $2000 per head for heavy steers and export cattle, but lamb market softens.

Restockers and feedlots are in the market for young cattle, with restockers paying an average of 959c/kg and feedlots outlaying an average of 848c/kg. Picture: Zoe Phillips

Beef prices are building up steam heading into winter, with further price rises evident for feeder and export slaughter cattle in early trading this week.

Feedlots paid to 492c/kg liveweight for heavy yearling steers at Wagga Wagga in the NSW Riverina on Monday in a strong buy-up that pushed the average price beyond $2100, or 464c/kg.

The best feeder heifers also stepped up, to reach 488c/kg to average 445c/kg.

It comes as feedlots ramp up buying of suitable young cattle, with the latest data behind the Eastern Young Cattle Indicator showing they were responsible for purchasing nearly 42 per cent of EYCI ­animals on Monday this week.

This nudged closer to restockers, who bought 48 per cent of the young cattle in the EYCI, although most of their focus is on lighter weight stock.

The following are the price points for the EYCI on Monday:

RESTOCKERS paid an average of 959c/kg carcass weight equivalent, with this high result linked to light calves sold out of Queensland, most notably the Roma store market.

FEEDLOTS paid an average of 848c/kg.

PROCESSORS paid an average of 821c/kg and were responsible for buying only 10 per cent of the eligible beef calves included in the EYCI calculations on Monday.

The best price recorded at an NLRS-monitored saleyard for trade cattle was 520c/kg for the pick of the vealer calves sold at Pakenham on Monday.

Data shows domestic meat buyers are still reluctant to cross over 500c/kg for steers and heifers to process, with the bulk of the trade weighted animals still trending in a range of 420c/kg to 490c/kg liveweight.

The other strong section of auctions this week was export cattle, particularly cows, a trend that is linked to higher prices being achieved for grinding beef on the export market.

Further price gains of 5c/kg to 10c/kg were recorded at major markets for all types of cows this week.

In the south, heavy beef cows sold to 348c/kg and averaged nearly 340c/kg at Pakenham for a high dollar-a-head range of $2020 to $2400 to average $2151, the NLRS calculated. Even light cows were tracking between $1400 and $1700.

Wagga Wagga had the biggest line-up of cows on Monday. The main run of heavy D4 beef cows (d-muscle and in fat score 4 condition) sold from 315c/kg to 339c/kg to average 325c/kg or $2230 on an average weight of 686kg.

Good price rises were also evident for bullocks, which sold to 419c/kg and averaged almost 400c/kg at Wagga Wagga.

DIRECT SOURCING LEAVES EXPORTS STRUGGLING

Lamb prices remained capped by the dry season and processors receiving good supplies of stock direct, with the market reverting back to a softer and erratic trend early this week.

There were 15,821 lambs reported on by the National Livestock Reporting Service on Monday, and they averaged $205, at an average weight of 26kg, working out to 786c/kg carcass weight.

But within the market is a wide price range based around weight and quality.

The heaviest export lambs are struggling against the restricted export demand, with several processors not fully active at saleyards due to numbers being sourced direct and on forward contract.

Some of the biggest export lambs over 34kg carcass weight are being discounted down to 660c/kg, with buyers rarely bidding over $270 regardless of size. The carcass price range for big export lambs at Bendigo on Monday was 668c/kg to 766c/kg, the NLRS said, for a ballpark cost of 720c/kg.

There was an even wider range of 574c/kg to 756c/kg recorded for extra heavy lambs at Wagga Wagga in NSW last week, for a similar overall result of 715c/kg.

There is more strength of demand evident for neater trade weight lambs, which are still commanding more than 800c/kg at times.

Part of this is linked to supply, a case in point being the breakdown of the Wagga Wagga yarding.

Weight and quality dictated terms at the saleyards this week. Picture: Andy Rogers

There were nearly 7500 lambs listed above 30kg last week, yet only 2028 head in the ideal supermarket style range of 22-24kg.

At Wagga Wagga these trade lambs averaged just shy of 800c/kg, after reaching a peak of 850c/kg.

Competition for Merino lambs also softened, with processors that had been chasing this breed not as keen to keep up the pace, which had pushed these lambs to crossbred money.

The Merino lamb indicator was listed at 752c/kg at the close of trading on Monday. The NLRS reported on a total of 3665 Merino lambs in the auction system on Monday and calculated an average of $178 on a weight of 23.8kg, working out to 754c/kg.

There has been some tougher price results for Dorper lambs in the past week, with not all buyers active on this breed and they have tended to be in the lower carcass range of 720-760c/kg for trade weights.

The mutton market has also softened, although continues to stand up well against heavy lambs.

The mutton indicator was listed at 633c/kg early this week, for a mild correction of 3c/kg in the past week. Good lines of Merino sheep have consistently made from $170 to $230, with occasional spikes higher to $260 for extra big sheep in high value skins.

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