Cattle prices: Heifers trade up to 85c/kg cheaper than steers

Heifers selling for as little as $400 show how far the market has fallen on the back of a bigger national herd and talk of El Nino.

Steers and heifers are trading at the biggest price difference the market has seen as producers deal with a burgeoning national herd and talk of El Nino.

Heifers have paid the price of more cattle on the market, with a gap of 85c/kg recorded late last week, according to Meat and Livestock Australia, which tracks the rates through saleyard values.

But on Monday, restocker steers were trading at 326c/kg compared to restocker heifers at 235c/kg, with the margin widening to 91c/kg.

MLA senior market information analyst Ripley Atkinson said during the second quarter (April-June), the premium for steers over heifers was the highest on record.

Mr Atkinson said the discount was due to:

INTENSE herd rebuilding over the past three years;

BREEDING numbers on farm higher than long-term averages; and

SHRINKING saleyard demand for breeding females.

Heifers have paid the price of more cattle on the market, with a price gap between steer and heifer rates of 85c/kg recorded late last week. Picture: Zoe Phillips

“Of all National Livestock Reporting Service price indicators, the restocker yearling heifer indicator has seen the most significant fall in prices this year,” Mr Atkinson said.

But he said this could change if there was a stimulus to buy, such as rain.

“Already last week, prices lifted for restocker heifers as rain brought confidence to the market while steer prices conversely declined as a strong up-tick in supply placed pressure on price,” Mr Atkinson said.

On AuctionsPlus last week, heifers weighing 200-280kg were the biggest category in the offering of females and dropped 36c/kg liveweight or $95 to average just $674, selling as cheaply as $400.

Joined female prices also fell, with pregnant cow values slipping to an average of $1504 with a 54 per cent clearance rate.

An AuctionsPlus spokesman said the offering of PTIC heifers was the smallest in almost a year and was “likely a case of producers choosing to hold stock on farm due to favourable feed availability, and (due to) unfavourable prices”.

Market analyst Matt Dalgleish from Episode 3 said there had been a change of sentiment in the cattle market.

“I think it is all about lack of confidence and concerns of a shift to El Nino despite the current weather not yet confirming a dry period,” Mr Dalgleish said.

“Restocking appetite has dropped and producers aren’t prepared to chase cattle higher, and feedlots and processors can be choosy.”