Store cattle lose ground as seasonal fears bite

The season, and falling prime values, have spooked the store cattle market with many producers wary of stocking up on numbers.

Seasonal fears on top of falling prime markets have stripped more than $200 from some lines of store cattle.

Prime cattle indicators have lost between 20-30c/kg carcass weight during the past month according to figures tracked by the National Livestock Reporting Service.

And NLRS figures also show restocker categories have dived by about 35c/kg liveweight during the same period after a brief foray in September.

Mortlake’s sale of more than 5000 cattle last week was quoted as up to 40c/kg cheaper than a month ago, even with predictions of rain.

Figures from the Western Victorian Livestock Exchange show grown steers averaged $1595 at last week’s sale compared to $1820 a month earlier, a dip of $225, with average liveweight prices dropping from 413c/kg to 367c/kg.

And it was a similar story for weaner steers, where returns dipped from 431c/kg at the September sale to a 394c/kg average.

Leongatha’s market was also cheaper last week, wit the centre’s stock agents association secretary Michael Foote quoting prices back 10c/kg on the week before.

Rural Marketing Association chief executive Chris Howie said freight was becoming a significant barrier for northern buyers looking to source numbers further south.

“The price difference is not wide enough to justify the north buying too far from home,” Mr Howie said.

“Southern seasonal conditions and last year’s erosion of confidence have put a hand brake on many opportunistic trades, even though the margin potential is excellent.”

Elders Albury manager Matt Tinkler said store cattle markets at the moment “really are watch this space”.

“Store prices are bouncing around quite a bit, and it is difficult to value stock anytime but especially now,” Mr Tinkler said.

“There were also varied results for stock sold on AuctionsPlus last week, and it seems it is very much location and season driven.

“In the south (southern Victoria), where the season appears to be on a knife’s edge, it’s not surprising that prices are slipping but in areas closer to the north (NSW) where there is a better season, the freight component comes into it because vendors are closer to buyers.”

Cattle producer David McCormack from Bullioh is selling Hereford store steers and chopper cows this week at Wodonga and said fears about the season meant he wanted to offload numbers.

“We did have 59mm (of rain) last week but we can’t rely on getting more,” Mr McCormack said.

“Yes, we know prices are going down but while the cattle are here, they are still eating grass so we are offloading now.”