Lowest prices in more than five years expected to hit store values

There is little joy for cattle vendors even as grass grows, with the benchmark indicator for eastern states falling below 500c/kg.

Impacts from the benchmark Eastern Young Cattle Indicator falling to 499c/kg early this week are expected to play out in store market values.

A good season in areas of southern Australia has failed to boost store cattle prices, which are struggling to maintain even current depressed levels.

While some northern NSW producers are trucking cattle south to sell in areas with more feed, the overarching lower prices are taking the sting out of bidding.

Market sentiment is being tested by falls in the benchmark Eastern Young Cattle Indicator, which dropped to 499c/kg carcass weight on Monday, its lowest point since 2018.

Nutrien livestock agent Chris Pollard from Yea will sell several hundred cattle for clients this Friday but said prices were “hard to predict”.

“You hear that prices at Wodonga last week were not too bad, but it seems like everyone has become resigned to getting 300-330c/kg for steers and low 200c/kg for heifers,” Mr Pollard said.

But Mr Pollard said even in a cheaper market, opportunities presented themselves.

“We are now buying cattle at a similar rate to selling them, so all weight gain is profit,” he said.

“That wasn’t the case when we were paying 800c/kg for steers and getting nowhere near that when we sold them.”

At Wodonga’s store cattle sale last week, several lines of cattle came from as far away as Packsaddle, north of Broken Hill, NSW, and Guyra, NSW.

And while selling agent Michael Unthank from Brian Unthank Rural said the vendors hoped bringing cattle to where there was more feed would be a good decision, prices depended on more than that.

“These vendors wanted to bring their cattle to an area that could handle them (feed),” Mr Unthank said.

“If we get a good spring down here (Albury), then we may see a bit more of this.

“But the thing is that while we might have feed, we are not safeguarded from what is happening in the cattle market.”

The EYCI has dropped below 500c/kg.

The poor store competition is also being seen online, with just 34 per cent of cattle on AuctionsPlus last week selling despite a smaller offering.

Clearances dropped as low as 25 per cent for 200-280kg heifers and 29 per cent for similar weight steers.

Mecardo analyst Tom Hanrahan said dry conditions had forced an influx of cattle not only through saleyards but directly to abattoirs.

And with predictions from the Bureau of Meteorology of hot and dry conditions for September to November, Mr Hanrahan said this looked unlikely to change.

“This (dry spring) would most likely mean a continuation of the steady flow of young and finished cattle onto the market as producers look to lighten off stock to battle the dry,” Mr Hanrahan said.

“While there are slight positives in certain areas, cattle prices have maintained a downward trajectory, which will require good rainfall across key cattle regions to turn around.”