MLA: Cattle projections give prices signals for rest of year

Meat and Livestock Australia has projected modest lifts in prices for the two categories it reports on.

Strong seasonal conditions in parts of eastern Australia and a healthy feedlot sector should allow cattle prices to remain stable for the rest of the year.

Meat and Livestock Australia released its cattle projections on Monday and factored in modest lifts in prices for the two categories it reports on – national feeder steers and national young cattle.

The National Young Cattle Indicator, which is calculated by a mix of data from physical auctions and online results, is expected to close the year at 363c/kg liveweight, analysts believe. Some analysts were more bullish, predicting an 11 per cent rise to 388c/kg liveweight but overall, the lift was expected to be less than 4 per cent.

And only a small rise of 2 per cent, or 7c/kg liveweight, is expected for feeder steers, with this class of stock expected to be selling at about 378c/kg liveweight by December 31.

Cattle prices show signs of stabilising in 2024. Picture: Zoe Phillips

“Investment and growth in the feedlot sector, as well as demand for grain-fed beef in high

value export markets will support the price in a period of high supply,” the analysts said.

While the projections do not foresee big lifts in rates for cattle, MLA said the market had been considerably less volatile than last year.

“After a year of rapid price movements, often driven by future perceptions of weather, cattle prices have been much more stable in 2024, and generally moved to a positive trend,” the report said.

“Gradual increases in slaughter have supported demand for processor-ready cattle, and good conditions on-farm across much of NSW and Queensland have supported a generally positive trend in the restocker end of the market.

“The prospect of further reductions in United States beef supply, and the resultant lift in demand for Australian beef in the global market, have given support to future demand and helped to support a neutral to optimistic tone in the market.”