Late break taking its toll on livestock prices

Cattle prices are bending to the pressure of drought conditions eating into southern breeding and fattening zones, as all major national indicators hit the skids.

Cattle prices are bending to the pressure of drought conditions eating into southern breeding and fattening zones.

All major national indicators hit the skids this week, with the restocker yearling steer leading the biggest falls, down 41c/kg in a week to 301c/kg liveweight on Tuesday.

The lack of an autumn break in many parts of Victoria, southern NSW, South Australia, Western Australia and Tasmania is putting the brakes on prices, despite the strong season experienced by much of northern NSW and Queensland.

And values would be even lower but for northern competition as well as pockets of Gippsland, where rain has allowed producers in those areas to stock up.

A breakdown of national slaughter data shows the female portion has lifted above 50 per cent of throughput, highlighting the pressure the industry is under.

And overall cattle slaughter numbers have ramped-up again with the latest data published by Meat and Livestock Australia showing weekly production at 138,200 last week – the highest weekly kill for the year so far.

With much of the Western District and south-east South Australia tackling the worst conditions in at least 20 years, Elders Naracoorte branch manager Tom Dennis said store sales were being dominated by NSW and feedlot orders.

“People are also moving to agist cattle out of the region, or leasing farms in the north, to get them through,” Mr Dennis said.

Southern producers were facing the worst economic conditions in recent memory, he said, following last year’s collapse in livestock returns and skyrocketing costs.

However, difficulties in the south are providing opportunities for others.

Large-scale commission buyer Duncan Brown said cattle prices were viewed as reasonable with potential for upside for northern producers with feed.

“I’ve got blokes who would usually take on agistment that are buying cattle as the dollars-a-head (investment) looks pretty sensible,” Mr Brown said.

The tough season across much of south-east Australia is also impacting sheep and lamb values, though the best stock is still selling well.

But it is prices for secondary lines that are suffering.

All Victorian sheep and lamb indicators lost ground early this week, with mutton slipping below 300c/kg carcass weight and no lamb indicators averaging above 700c/kg carcass weight.

MLA global supply analyst Tim Jackson said weekly lamb slaughter last week was the highest on record at 509,499, boosted by a lift in Victoria where producers were selling off stock.

“This is maintaining the trend of record-breaking results in lamb production seen so far in 2024,” Mr Jackson said.