Cattle prices: Beef returns surge, ahead of spring weaner sell-off

Global young cattle prices are hitting record highs and experts are saying the best could be yet to come.

Cattle prices look set to be strong until at least October, experts say.

Young cattle prices are holding at unparalleled rates, with some analysts predicting declining returns won’t materialise until summer nears.

The Eastern Young Cattle Indicator remains above $10/kg, closing Monday at 1028c/kg carcass weight, just below the sky-high, all time record of 1031.5c/kg set last week.

The indicator price was driven by big yardings in NSW and Queensland last week, but prices are dear everywhere, including, unusually, in the cull cow market where prices are tipped to go further north.

This follows surging US grinding beef returns as the easing of Covid-19 restrictions sees the US restaurant trade re-open.

Beef cows averaged more than 400c/kg liveweight at Swan Hill last week and the price average for processing cows from National Livestock Reporting Service saleyards on Monday was $2402 or 395c/kg.

About 3000 cattle are expected at Bairnsdale’s store sale this Friday and Elders Bairnsdale livestock manager Morgan Davies said recent rain in the region had put East Gippsland on a good footing for spring.

“East Gippsland is more of a breeders area, so we are hoping the rest of Gippsland turns up to buy,” he said.

“Coming into spring Gippsland has already had a few good (store) sales, but we will have a few more young cattle coming in September and then the Western District will fire up in late spring and summer and then the central and northern areas into January.”

Thomas Elder Markets analyst Matt Dalgleish said the young cattle price may not peak until late spring when greater numbers of young store cattle were for sale.

Mr Dalgleish said it could still be a year and a half away before heavy steer prices — what producers growing out young cattle could expect to receive at the other end — eased off to more like 300c/kg liveweight and this reduced the heat on young store cattle prices.

Then, cattle prices generally would be likely to return to “more normal” levels, he said.

While some export markets were showing some resistance to the high Australian prices, Asian markets were not showing as much sensitivity, which Mr Dalgleish attributed to both the current squeeze on global protein supplies and the development of premium markets.