Why cattle prices are on the up

After recent rain in the north pushed prices up, there is some hope the cattle market is starting to improve as numbers on offer slow.

Harry Schubert from Schubert Boers at Wodonga purchased Hereford steers for $1630, or 365c/kg, to go to a bullock finisher at the Wodonga store sale.

Cattle prices have lifted off the back of rain in the north, with hope building that the market is beginning to turn.

While restocker categories were higher in NSW and Queensland last week, finished stock categories were more in demand further south, where the season is dry.

At the Naracoorte prime cattle market on Tuesday, prices for most categories of cattle improved 30-40c/kg.

Meat and Livestock Australia senior market information analyst Erin Lukey said last week was a perfect example of how fast weather and rainfall impact markets.

The National Young Cattle Indicator lifted 5c/kg to be at 351c/kg liveweight on Tuesday.

And, cow prices have also started to improve, putting a stronger base into markets.

According to the National Livestock Reporting Service some heavy beef cows surged by up to 40c/kg, compared to a week ago.

This comes as saleyard numbers slow, particularly in northern areas after rain this month, and cattle supply fell by up to a fifth at major prime markets last week.

TDC agent Rob Handbury from Lucindale in South Australia said rain in NSW and Queensland pushed young cattle prices up by 20c/kg in the past week.

He said store sales at Ballarat and Mount Gambier in South Australia last week both showed improvement, and in NSW the Wagga Wagga prime market had also followed the trend.

“Numbers are starting to dry up,” he said.

“I think we have seen the bottom of it (lower prices), at the end of January, and I think from now on, prices will lift.

“I think prices will improve, we just need a good autumn break.”

Mr Handbury said steers, over 350kg, were attracting feedlot interest at the moment.

The feeder steer indicator has lifted 15c/kg in the past week, to sit at 362c/kg.

This comes as data released from the Australian Lot Feeders’ Association and MLA confirmed 2024 as the largest calendar year for grain-fed beef on record, with 3,140,026 cattle finished in feedlots for 2024.

ALFA president Grant Garey said persistent dry conditions across southern states highlighted the benefits from grain-fed production.

Willaura’s Antony Baillieu, of Yarram Park, said a significant rise in cattle prices was “imminent”.

“I am willing to wage this (the cattle market) is going to take a big rise; cattle numbers are diminished and when we get these times that we are having now, it will come out strongly again,” he said.