Vealer rates lead momentum on limited supply

Buyers were prepared to pay top dollar for slaughter cattle given the shortage of supply as the industry heads into colder months.

Market watch: The price momentum continues for slaughter cattle.

HEAVY vealers have crossed into new price territory, selling for more than 500c/kg liveweight in Victoria this week.

The price was a highlight in a week where good slaughter cattle of all weights and grades gained momentum as the industry faces up to tight supply heading into the colder and out-of-season supply months.

At Pakenham on Monday domestic meat buyers stepped up their bidding, paying a top of 515c/kg for vealer heifers weighing 395kg liveweight.

They were described as “plum’’ calves, sired by a Limousin bull out of proper Angus Friesian-cross vealer producing cows.

The same vendor also sold a vealer steer straight off its mother and weighing 500kg for 505c/kg, for a return of $2525.

“It is quite incredible really, and it wasn’t like it was a struggle to get that money,’’ said Anthony Delaney, Nutrient at Pakenham. “A few buyers wanted them and they started at 500c and went to 515c pretty quickly.’’

While the industry has seen lighter weight calves sell at this high money, mainly to restockers, it is the first time agents can recall a 500c-plus price for heavy slaughter stock.

The official price quote for vealers at Pakenham was 20c to 25c/kg dearer than a week ago, according to the National Livestock Reporting Service.

Best B-muscle vealer heifers averaged 496c at Pakenham, and the steer portion 491c/kg.

It follows some strong results at other Victorian centres late last week, including Swan Hill, where cows sold to 349c/kg and trade cattle to 488c/kg.

The bullock market was also dearer this week. The main run of heavy steers over 600kg averaged 396c/kg at Pakenham to be 5c stronger at an average of $2676 a head.

Limited supply has been the trigger for the dearer market as processors struggle to find cattle in genuine slaughter condition, and also compete against feedlots on many suitable lots.

Even the cow market has been able to hold its form against the rising dollar amid reports some exporters have are either not attending or buying reduced numbers.

However, some erratic price results further north in the past week meant there has been little movement in averages.

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