Prime prices are dragging back up but hard times in store cattle

There may be slight lifts in prime prices thanks to smaller offerings but confidence is wobbly for store cattle.

A CONFIDENCE divide is emerging between store and prime cattle markets as the year’s sales draw to an end.

The benchmark Eastern Young Cattle Indicator gained a modest 10c/kg after Monday’s sales to close at 879c/kg, and started to claw back a portion of the more than 100c/kg loss it had sustained over the past month.

Major regional centre Wagga Wagga’s cattle market on Monday of 1900 was back almost 40 per cent, and it pushed prices up to almost 50c/kg higher than the previous week’s sale.

It was one example of many sales in the past week where vendors have pulled out cattle due to the dipping rates.

Meat and Livestock Australia senior market information analyst Ripley Atkinson said while the cattle market had receded sharply, it was operating in a more typical fashion as the year neared its end.

”Usually buyer demand wanes and the market generally softens up at the end of the year,” Mr Atkinson said.

“Last year (2021) was the exception, although longer-term trends show these seasonal softening in prices as the year ends are not uncommon.”

Corcoran Parker director Justin Keane from Wangaratta said he was not surprised producers were keeping back numbers.

“People who have sold in the past couple of weeks may just now hang on to other stock and let the market roll,” Mr Keane said.

“There is still two foot of grass everywhere and why would you sell at the lower prices unless you had to?

“Producers who need cash flow will be the ones who do sell, but they won’t be forced to due to the season.”

But any lift in prime prices is yet to play out in store sales, with some vendors at last week’s Euroa weaner sale being paid hundreds of dollars less than last year.

Elders agents selling at the Euroa cattle sale where prices were up to $700 down on last year.

The overall average was $1830 this year, whereas a year ago, it was difficult to buy any steer for less than $2000.

Vendor Sue Gall from Euroa said she was expecting prices to come back but

the 389kg Angus which made $1950 sold for much less than the $2600 for similar weights 12 months ago.

“We knew it was going to be lower but it is a massive drop,’’ Ms Gall said.

“We’re happy to cop a drop but a change in price like this of nearly $700 does change your budget.”