Feedlots dominate cattle market while lamb languishes

Our prime market price guide is a one-stop-shop which reveals how much cattle and sheep are selling for and who is buying them – as well as weights and yarding numbers.

Processors have become minor players at major saleyards as feedlots ramp up their purchases of young and grown cattle.

There have been small price gyrations for cattle in the past week as the market continues to hold firm on the drivers of feedlot and restocker demand amid tightening supplies.

Latest figures show 90 per cent of the young vealers and yearlings included in the Eastern Young Cattle Indicator have been selling to feedlots and restockers, with processors claiming only 10 per cent of the supply pool.

Feedlot demand has been the talking point of the market, with buyers operating strongly in all weights from 300kg to 600kg at times.

The following data is a breakdown of feedlot activity recorded at the major prime markets covered by the National Livestock Reporting Service on Monday, including Pakenham, Mortlake and Wagga Wagga, Tamworth and Forbes in NSW.

YEARLING STEERS: of the 1344 head assessed by the NLRS, 966 sold to feedlots at an average of 455c/kg liveweight or $1844 a head across an average weight of 406kg. Processors bought 148 at an average cost of 427c/kg or $2065 at a heavier weight of 484kg. Restockers claimed 202 costing 479c/kg at a lighter weight of 298kg, averaging $1428.

YEARLINGHEIFERS: of the 1033 assessed, feedlots bought 658 at an average 433c/kg or $1647 across an average weight of 383kg.

These feeder heifers were listed as 13c/kg dearer than a week ago. Processors bought only 109 heavier heifers at 446kg at a cost of 393c/kg, to be 10c/kg cheaper. Restockers secured 145 heifers at 415c/kg on a lighter weight of 312kg, equalling $1289.

GROWNSTEERS: of the 527 assessed, feedlots still dominated, buying 274 at an average weight of 552kg at 420c/kg, gaining 6c/kg on a week ago as supplies tightened. Meat buyers paid an average of 397c/kg for heavier steers at 635kg, costing $2520.

These categories had the most cattle available, and as the figures show, feedlots are having the biggest influence on the market.

Even in the vealer categories, feedlot buying is dominating with processors securing only the top, high-yielding calves for slaughter. The average for vealer steers to processors on Monday was 490c/kg, with individual animals at the top end making 500-525c/kg.

The other strong section of the auction system has been cull cows as grinding beef prices surge on the global stage.

On Monday meat processors paid an average of 302c/kg for 1128 beef cows offered at major yards in Victoria and NSW, with the best commanding up to 330c/kg.

This worked out to an average of $1785 across an average weight of 585kg.

LAMB FALLS, MUTTON THE STANDOUT

It was another subdued start for lamb on Monday, with the market unable to build on the stronger trends that emerged for a few days early last week.

Lamb prices at Bendigo were quoted as $5 to $15 cheaper, with some of the best trade lambs dropping by $20 on the previous Monday

The lamb market has faced some disruptions this week. Major exporter JBS shut its processing plants after its global computer system was hacked, and the company did not have a representative at the Bendigo sheep and lamb sale.

Buyers have also told The Weekly Times the latest Covid-19 lockdown in Victoria has created uncertainty in the wholesale meat markets, with restaurants and food outlets unsure of what lies ahead.

On the supply side, buyers said there still appeared to be plenty of lambs around and several companies have been quiet at recent sales.

After upbeat market reports out of Bendigo and Ballarat early last week, a more subdued tone entered southern sales midweek, with Horsham recording limited buying support and lower prices.

This followed through into Ouyen and Swan Hill the following day.

Markets fell from last week’s highs, but mutton, which is in short supply, continues to bring good returns for vendors. Picture: Jenny Kelly

The overall price picture, calculated from all saleyards in the eastern states, including South Australia, has not changed much.

At the close of selling on Monday the price indicator for heavy lambs (22kg-plus) was at 797c/kg carcass weight, showing a change of just 18c/kg in the past month.

Trade weight lambs were listed at 843c/kg, for a movement of 31c/kg in the past month. The higher price of this indicator is due to 20-21kg lambs, which have been making a premium due to a lack of supply.

Of the 33,845 lambs assessed by the NLRS at major markets on Monday, the average weight worked out to 23.58kg for a dollar return of $187, which equates to an estimated 781c/kg liveweight.

A breakdown of saleyard data shows a lot of heavy lambs selling from 700c/kg to 780c/kg, with some of the super-sized lambs over 36kg costing processors less than 700c/kg at times.

The average price recorded for 14,000 Merino lambs sold by auction on Monday was $172, working out to a ballpark 700c/kg. However, skin values can greatly change dollar-a-head returns on Merinos, with longer wooled types worth more than $20 each.

The market to watch is mutton, with low supplies creating price spikes at individual yards.

This was evident at Bendigo this week, where the NLRS said mutton was making as much as lamb, quoted at 700-750c/kg for the main lines.

It pushed big crossbred ewes to a top of $294, with a lot of heavy Merino and Dorper ewes in the $200 to $250 range.

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