Cattle buyers take a pause, lamb market stays flat

Demand steady for quality cattle but buyers are reluctant to push rates higher, while a lack of momentum leaves lamb prices softer.

Restockers are still holding the young cattle prices up, with the dearest markets in the north. Picture: Madeleine Stuchbery

Strong results were still evident for quality cattle on Monday, however there were signs that buyers are backing away from pushing the market to higher price points.

While the best vealers still made above 500c/kg liveweight in Victoria on Monday, the general run of young cattle fell 10-25c/kg at both Pakenham and Mortlake — plainer winter quality cited as a factor in the easier result.

There were also more mixed trends in the north, including for cows, which had been pushing higher on better export prices for manufacturing beef into the US.

So the impact on overall saleyard indicators has been mild, with only slight reductions evident for some classes. Feedlots and restockers continue to hold the market together.

The latest breakdown of the Eastern Young Cattle Indicator shows feedlots purchasing nearly 49 per cent of all eligible vealers and yearlings included in the data.

The raw EYCI figures for Monday were restockers bought 5052 head at an average cost of 945c/kg carcass weight. This was followed by 4326 cattle, or 42 per cent going to feedlots at 859c/kg, while processors purchased just 978 at a ballpark cost of 830c/kg.

So, once again, it is restockers holding the EYCI at an overall high level of nearly 900c/kg, with the dearest markets in the past week all being in the north, including Roma in Queensland; Singleton, Scone, Armidale and Wagga Wagga in NSW.

The highest ranked Victorian market in the past week was Wodonga at a cost of 864c/kg for young cattle — still well under the overall EYCI average on Monday of 898.6c/kg.

Meanwhile, cow supplies have been boosted by farmers selling to take advantage of high prices of more than 300c/kg liveweight.

There has been instances in the past week of very heavy beef cows making more than $3000.

The National Livestock Reporting Service assessed 1395 cows at the major prime markets it monitors each Monday.

The average price achieved was 304.7c/kg liveweight for 1052 beef cows sold, working out to $1840 per head on an average weight of 598kg.

This was 2c/kg dearer than a week ago.

Dairy cows averaged 247c/kg on 537kg at $1344 per head — the result again showing the overall trend of the best cattle holding their value this week but plainer types easing.

Other key results on Monday, based on NLRS saleyard data were:

509 grown steers sold for an overall average of 397c/kg or $2320. The breakdown was 210 heavier 613kg steers to processors at 392c/kg or $2402, and 274 to feedlot orders at 411c/kg on a lighter weight of 544kg at $2239;

1302 yearling steers sold for an average of 451c/kg or $1704 on a weight of 381kg. Feedlots and restockers dominated purchases; and

863 yearling heifers sold at an average of 419c/kg or $1569 across a weight of 377kg.

LAMB ON QUIET IN COOL CLIMATE

There is still no upward winter price momentum for lamb, with the market just holding on, on a softer trend early this week.

Plentiful supplies out of NSW appear to be a factor in capping prices, with figures showing saleyard numbers at high levels for this time of year.

Mecardo crunched the latest figures and said lamb numbers at the major markets in NSW during the final week of last month were 26 per cent higher than the five-year average. Overall, buyers had a selection of nearly 216,000 lambs in the auction system for that week.

On Monday this week numbers were again solid, with Bendigo increasing to around 15,000 and Dubbo in NSW to 18,620. Some of the selling activity was linked to the looming long-weekend, which will cancel markets next Monday for the Queen’s Birthday holiday.

On Monday this week the NLRS assessed 58,420 lambs and sheep at saleyards across the eastern states. The trend was modestly weaker for lamb, with the total assessment of 33,446 lambs showing an average price of $183, working out to 781c/kg on 23kg carcass weight — a fall of 3c/kg on a week ago. Note this average includes all breeds from crossbreds to Merinos, and all weights.

When the data is broken down, it shows the better finished and heavier processing lambs firm at a ballpark of 790c/kg or $204 over 25kg. Buyers are still resisting going above 800c/kg for all but the very best supermarket style lambs weighing 20-23kg. Dragging the overall lamb market down this week has been weaker support for Merino lambs.

Sales such as Bendigo recorded an increase in stock, but trends show no signs of a winter lift. Picture: Chloe Smith

It was evident at Bendigo on Monday, the NLRS said, with plainer quality a factor as more Merinos with inconsistent fat cover and carcass finish are offered. The 8021 Merino lambs assessed by the NLRS on Monday averaged just 19kg and dropped to $154, for an average cost of 733c/kg — a drop of 13c/kg on a week ago. In dollar-a-head terms, the heaviest export lambs at Bendigo sold to $278, twice, for big lambs estimated around 36kg. Most of the better medium and heavy trade lambs have remained in a range of $185 to $220.

After showing some red-hot results last week at over 700c/kg, the mutton market was much cooler on Monday.

There was significant price falls of $30 to $40 at Bendigo on Monday.

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