Major sales prices easing as end of year nears
Impact hits export cattle the most, but prices for young cattle were more robust due to ongoing feedlot and restocking support.
CATTLE prices started to show signs of easing as the season matures and northern processors prepare for end of year shutdowns.
Export cattle were most affected, with prices for cows and bullocks trending 8-12c/kg lower at major saleyards earlier this week.
Price results for young cattle were more robust thanks to ongoing feedlot and restocking support, despite domestic meat buyers also showing signs of backing down from the strong money of the past month.
The national saleyard indicators only showed mild adjustments after the close of selling earlier this week, with feeder steers holding at 439.75c/kg liveweight; cows back under $3 at 296c/kg; while heavy steers remained at 376c/kg.
But results from southern saleyards did show some bigger corrections, suggesting national averages are likely to weaken as the week progresses.
Cows are something of a barometer to the state of export demand, and competition has weakened with less buyers active at many markets, according to feedback from the National Livestock Reporting Service.
Wagga Wagga in the Riverina had the biggest selection of cows early in the week, and the main run of 486 heavy beef cows eased 8 cents to sell from 300-316c/kg lwt.
With the big weights of cattle at present due to the season these cows still averaged over $2000.
An 8 cent correction on a 650kg female is equivalent to about $50.
At Pakenham the good heavy beef cows were quoted as 10-15 cents lower than a week ago, and there was a bigger price spread of 286c to 329c/kg over the well covered females.
Bidding for bullocks has also wound down in early trading this week.
Heavy steers from 600kg to 750kg made from 368c/kg to a top of 380c/kg at Pakenham, which was similar to the price spread recorded at Mortlake on the same day for similar grade bullocks at 343c/kg to 379c/kg, according to NLRS data.
In contrast, the young cattle market was held together by feedlot and restocking demand.
The main run of heavy feeder steers sold at Wagga Wagga, weighing between 400kg and 500kg, averaged 432c/kg to be just 3 cents shy of last week’s results.
Similar weighted heifers to feedlots eased 7 cents to an average of 403c/kg.
Weight is also becoming an issue for buyers at prime sales, with reports of the majority of young cattle presenting above 400kg.
As a consequence any nicely weighed calves are holding their value the best.
As an example, yearling feeder steers in the 330-400kg band at Wagga Wagga averaged 452c/kg to be 4 cents dearer.
The best price recorded for vealers earlier this week was 465c/kg, with domestic processors pulling most sales back to between 400-440c/kg for the best milk calves.
MORE
FEEDLOTS, RESTOCKERS HOLD THE FORT
WEIGHT GAIN MEANS PRICE PAIN IN STORE CATTLE COSTS
BEEF CONTINUES UPWARD TREND ON DEMAND FOR VEALERS, YEARLINGS
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