Winter worries rattle market but young cattle hold steady
The AuctionsPlus heifer section showed plenty of resilience this past week, which proved to be a market highlight.
Mild cracks are starting to appear in the cattle market as the season becomes a greater focus amid predictions the winter period could be drier than average.
Restocker demand has started to fragment, with producers still prepared to support the best bred young steers and heifers but backing off on others.
Feedlot demand, which has been a key driver of young cattle sales, showed signs of easing this week with not all orders operating at the key Monday market indicator of Wagga Wagga in the Riverina.
The cow market has eased, with the bullock market becoming erratic.
There was still robust demand on AuctionsPlus last week, with light steer calves in the 200-280kg range averaging $1479 or 594c/kg liveweight to be within 10c of the previous week.
Likewise, the heifer portion showed the same resilience to average $1376 or 549c/kg lwt.
The Eastern Young Cattle Indicator (EYCI) hit a new record high of 910c/kg cwt late last week, with this number again driven by big price results for young steers and heifers being sold in Queensland and parts of NSW.
Where price trends have become more erratic is for older breeding cattle, and over mixed runs of cattle being sold at regular prime markets.
The latest national price averages available for cattle, from saleyard data gathered by National Livestock Reporting Service officers, were:
HEAVY steers 374c/kg, down 4c in the past week;
MEDIUM steers 376c/kg, down 6c in the previous 7-days;
YEARLING steers at 451c/kg, down 11c;
FEEDER steers at 465c/kg, to be firm; and
COWS at 278c/kg lwt.
In Victoria on Monday there were still some very strong price results recorded for the best tradeweight cattle in genuine slaughter condition due to limited supplies as more “wintry’’ cattle appear at sales.
At Pakenham the best vealer steers, rated as B-muscle and sired by Limousin and Charolais bulls, sold from 490c to a top of 532c/kg to be 10c dearer than a week ago, the NLRS said.
The trend of top quality veal and fed yearlings holding their value has been evident at both southern and northern saleyards as butchers and domestic processors find it difficult to source suitable kill cattle.
HEAVY LAMBS FALL AGAIN, MERINOS BUCK TREND
Export competition remained sluggish in early trading this week, keeping a cap on heavy lamb prices at saleyards.
In contrast, trade lambs have generally held their value due to limited supplies of well finished stock in the 20-24kg range, while Merinos have been the consistent sellers and highlight of many auctions.
The latest saleyard indicators, published by the National Livestock Reporting Service, tell the tale.
At the close of selling on Monday night:
HEAVY lambs had eased 2c down to an average of 773c/kg, and are now showing a decline of 8c in the past week and a fall of 47c in the past month;
TRADE lambs were at 804c/kg, a cent higher, and are tracking 7c lower in the past week to also be down 47c in the past month.
MERINO lambs were at 772c/kg, 5c higher and firm on a week ago to buck the falling trend to be 1c higher on the past month.
The other category continuing to perform strongly is restocker lambs, with reports agents are buying lambs to be fed for winter forward contracts.
The restocking lamb price was at 952c/kg early this week and has been on a steady to rising price trend in the past four weeks.
It is extra heavy lambs over 30kg cwt that are having the toughest time in the auction system, with major export companies not needing as many numbers out of the saleyard system due to good supplies direct and on contract.
At Bendigo earlier this week, northern NSW processor Fletchers was quiet on heavy lambs, with JBS Swift also buying only limited numbers.
Prices reached a top of $256, with the NLRS noting that there were no the super-sized lambs above 36kg that have been penned at recent markets and have sold to $285.
So on paper, heavy lambs showed an $18 fall, but due to less weight the correction was more in the realm of $5 to $10.
The NLRS quoted a ballpark of 740c/kg for heavy lambs.
Most heavy lambs above 26kg have been making from $200 to $230 in the past week, with
NLRS data showing a price spread of 720c to 780c/kg for most sales.
Nicer weighted trade lambs with good finish have been at a price point of $180 to $210.
Merinos have been in a similar price band to crossbreds, and often on a carcass basis, have matched the meat bred lambs.
Mutton prices have continued to track strongly on the back of limited numbers and ongoing demand from export processors.
MORE
YOUNG CATTLE PRICES REACH NEW RECORD
Dry season takes a toll at Leongatha
Cheaper prices meant good buying for restockers at the Leongatha store sale, but vendors took a hit due to the dry conditions. See the sale report.
‘Phenomenal’ quality at Yea
Angus and Hereford weaner steers scarcely tipped below 400 cents a kilogram at Yea, with “phenomenal” quality and a large backgrounding order. See the sale recap.