Prime slide may have halted

The year has seen price fall after price fall in the prime market but there are signs it could have steadied.

The cattle market is showing signs of life after a tough start to the year.

But even with a slight rebound on Monday, due partly to reduced offerings at some centres, prices are still tracking lower than at the same time last year.

The benchmark Eastern Young Cattle Indicator closed at 792c/kg on Monday, gaining 11c/kg in the past week, yet is still tracking 321c/kg carcass weight lower than last year, or down almost 30 per cent.

Cattle producers have been warned to brace for lower prices. Picture: Yuri Kouzmin

Any positivity in recent rises has been balanced by sobering reading in Meat and Livestock Australia’s cattle industry projections released Tuesday, warning producers to factor in lower incomes.

“Higher supply of both finished and young cattle will place downward pressure on market price, as seen during November 2022, when national yardings reached their highest volume in two years and cattle prices trended downwards,” the report said.

“While the potential for a global recession weighs on the economic outlook, current global dynamics point towards continued demand for Australian beef in established and emerging markets.”

But there was a warning the market could come under more pressure if the season dried off.

“A return to drier seasonal conditions with the possibility of below-average rainfall in 2023 may drive a higher turn-off of stock, specifically slaughter-weight cattle, such as cull cows and heavier steers,” the report said.

“If this increase in supply cannot be managed by the processing sector due to a shortage of labour, repercussions for the broader industry will be felt throughout the market.”

Meanwhile, store prices will be tested again this week with more than 7000 weaners to be offered at two sales at Wangaratta.

Nutrient Wangaratta agent Daniel Fischer said buyers would be “very dollar orientated at this week’s sales, having a budget in mind and sticking to it”.

“I think there were will be a bit of competition over $1700 by bullock fatteners and feeders, but the market for weaners at $1400-$1600 will be really strong,” Mr Fischer said.

“We need to forget last year (high prices) because it was so very good, and accept that these prices are still really good.

“When producers are getting $2000 selling a feeder steer, they can pay $1500 but they can’t pay what they did last year.”