Cattle prices: Market trends up

In trading this week, northern cattle markets show promise while a southern state leads on average cow price. See the latest market analysis.

Cattle prices have generally firmed in the past week.

However, cracks remain, with not all markets performing at the same level.

Northern-based markets in NSW had some of the strongest outcomes on Monday as they benefited from recent wet weather, which reduced saleyard supplies.

An example of this was the cow market at Wagga Wagga in the Riverina, which had just 400 head this week, and the main run of heavy fat score four cows averaged 20c dearer at 240c to a top of 268c/kg liveweight.

But showing how the cattle market is still varying around quality, numbers and export competition at different saleyards, the NLRS reported averages from 181c to 252c/kg for processing cows in the past week.

Broken down by state Victoria has the strongest cow average of close to 220c/kg lwt, ahead of NSW on 210c and Queensland on 200c, according to data published by Meat and Livestock Australia.

Buyers and vendors gather at the rail during the Pakenham cattle sale. Picture: Zoe Phillips

Looking at the overall price trend line for cows, prices have been gradually improving since mid June, when they bottomed out at an average of 182c/kg lwt.

The feeder steer indicator has followed a similar pattern, improving from a low of 305c/kg last month to close at an average of 319c/kg lwt on Monday night. The saleyard average was taken higher by a dearer sale at Wagga Wagga on Monday, where 500 feeder steers averaged 337c/kg lwt, the NLRS reported.

Overall, all the saleyard indicators published by the NLRS for processing stock have showed improvement in the past week except for young restocking steers.

The price of yearling steers to the paddock continued to drift lower, the latest auction average sitting at 319c/kg to show a decline of 8c in the past week.

This result could be connected to plainer and mixed quality in the prime market, as the trend for young store cattle on AuctionsPlus last week was dearer.

A smaller catalogue of cattle listed online last week helped support sales; the main lines of young 200-280kg steers averaged $972 at an improved rate of 419c/kg lwt, AuctionsPlus reported. There were light steers quoted as making up to 585c/kg.

Medium-weight yearling steers in the 280-330kg weight range lifted by $65 a head to an average of $1132 at the cost of 381c/kg lwt, AuctionsPlus said.

The dearer rate for young cattle comes as the market for finished heavy steers has gained some traction, particularly in the south, where bullock supply remains tight amid wet conditions.

Last week, the average for bullocks at Leongatha was 340c/kg lwt as it easily led the results table – most other saleyards reporting averages below 300c, partly linked to quality and low numbers.