The price hit for livestock no one was wanting

There have been losses of up to 100c/kg in the past week for some categories of livestock, with the “see-sawing” prices puzzling producers.

At Bendigo on Monday, some lambs were making below 500c/kg carcass weight and plenty were making less than 600c/kg. Picture: Zoe Phillips

A dry few weeks have sent livestock markets back into tough territory as prime prices lose ground.

After a welcome early year lift, sheep and cattle prices have taken a hit, with the weather and surging supplies blamed for the fall.

But even as some producers choose to hold stock back and some markets are smaller, it’s not enough to stem the slide.

The benchmark Eastern Young Cattle Indicator has dropped 22c/kg carcass weight in the past week and has shed almost 50c/kg in the past month to close on Monday at 578c/kg.

There have been losses across the board for cattle, with cows, finished steers and bullocks now making 25-50c/kg lower liveweight than a month ago.

The results fly in the face of export beef prices, with the cow beef 90CL indicator now at its highest level ever in the United States.

Beef producer Julian Carroll from Mudgegonga said the market reaction was puzzling.

“You look at the livestock prices and they are see-sawing so much and it is hard to explain,” Mr Carroll said.

He said the only thing that would stem the losses and lift prices now was “grass fever”.

“The screws are on as people look for the autumn break,” Mr Carroll said.

“We’ve had a really dry Februrary and March and I expect that some people are looking at depleting feed and deciding to sell.”

The beef industry is not alone with all lamb indicators also down in the past month, and some Victorian saleyard prices more than 100c/kg carcass weight cheaper in the four-week selling period.

At Bendigo on Monday, some lambs were making below 500c/kg carcass weight and plenty were making less than 600c/kg.

Mecardo analyst Olivia Agar said lamb processors had enough supply at the moment and this was causing prices to ease.

“Despite an encouraging price outlook for late autumn and winter, the market continues to slide lower.” Ms Agar said.

“It isn’t surging saleyard throughput that’s to blame - the number of lambs and sheep yarded over the past two weeks has been below five-year average levels.

“However, the number of stock going to processors is ample for the time being and it’s allowing prices to ease.”

But Ms Agar said forward contracts released for late autumn and winter point to “plenty of upside for prices compared to current saleyard values”.

“Tightening lamb supply gradually starts from this point in the season if you look at history, however, we will need to see rain on the ground first (for lamb supply to tighen).”