Rates dip 100c/kg on a month ago in big yarding at Mortlake

Despite outperforming the rest of the flagging livestock market last month, prices crashed back to earth at Mortlake’s latest sale.

Prices have dropped by 100c/kg in the past month at Mortlake because the centre could not sustain rates set in May.

While select pens did break through the 400c/kg mark, they were cherry picked out of the offering of about 4650 cattle and the majority of Angus steers sold for less.

It was a far cry from the sale a month ago, where lines of lightweight Angus steers sold for more than 500c/kg liveweight multiple times, and the majority of the good black calves weighing 280kg comfortably trended above 400c/kg.

It was more in line with rates set at recent sales at Yea and Euroa in the past fortnight where values were below this.

Elders Warrnambool agent David Patterson said the market was cheaper than a month ago but few were surprised given results in other sales.

Mr Patterson said repeat buyers who knew certain lines of cattle were prepared to pay more than the going rates, but outside these, prices settled in a fairly tight range.

A portion of the yarding at the Mortlake sale.

He said the yarding included spring-drop weaners that had to be sold to make room for incoming calves from cow and calf operations, as well as about 900 feeder steers that many producers had decided to quit now instead of taking on to heavier weights.

“The bullock job is not offering them much more than what they can get as feeder weights at 450-500kg so they are getting out of them and back into lighter steers,” Mr Patterson said.

It was a sentiment shared by Nutrien agent Josh McDonald who said vendors were prepared for the lower rates.

“Prices are more or less down by half compared to last year but everyone is well aware of the market and prices, and that is on a downward trend,” Mr McDonald said.

“I thought the heifer prices were pretty solid but the steer prices did follow the downward trend.”

The tempo of the sale was set early, with the first pen of Angus steers weighing 579kg making 315c/kg or $1823.

This was above the rate for heavy steers in prime markets at the moment, which averaged 293c/kg at sales monitored by the National Livestock Reporting Service over the past week.

Heavy steers over 500kg at Mortlake consistently made above the 300c/kg mark so a premium to prime values, but those who had bought in cattle earlier to finish to these weights would have struggled to make a profit.

Angus steers 400-500kg made from 340-362c/kg and 300-400kg steers trended from 348-388c/kg.

But anything that was not considered quality or suited breed requirements of buyers suffered, including some 499kg Murray Greys steers that made 300c/kg ($1497), and a pen of 403kg Speckle Park steers that made 294c/kg or $1185.

Buyers appeared to be chasing specific lines of cattle, and paid a premium for those regardless of weight range.

That included the Angus from South Boorook, with the line of weaners all making more than 400c/kg, selling from 414-438c/kg for the run that weighed 239-288kg.

It was a similar story for the run from T and K Netherway, whose Angus steer weaners were another line which all made above 400c/kg, weighing 224-273kg, selling for 406-414c/kg and returning $927-$1130.

The biggest run of cattle came from Moyne Falls, which sold 504 Angus steers to a top of $985 and an average of $750. The steer weaners weighed from 150-262kg and made 355-390c/kg.

Heifers sold mostly from 250-330c/kg for the bulk of the offering but there were plenty of sales outside this.

That included a pen of 537kg Angus heifers, 34-36 months, which made 220c/kg or $1181.

At the other end of the price and weight range, a pen of Moyne Falls heifers weighing just 185 kilograms made 356c/kg or $659.