Why livestock prices are on the up and could be sustained

It hasn’t been a standout year for livestock prices but rates are finishing with a bang. See the factors behind the rise.

Livestock producers are swamping store and prime markets as the lift in prices draws out numbers.

And it is lamb’s turn to shine with rates lifting despite the big spike in numbers, while cattle prices have steadied under the weight of extra stock.

Sheep producers sent an extra 7550 lambs to Bendigo on Monday to bring the yarding to 24,200 while Corowa, NSW, also had more lambs, up 5450 to 12,450.

It wasn’t enough to stop prices rises, with values assessed by the National Livestock Reporting Service at some markets as up to $40 dearer.

Yardings are also on the rise for cattle with about 20,000 store stock listed in Victoria alone this week including a big yarding of 6500 booked into Mortlake.

Wagga Wagga’s weekly market on Monday had more than 7500 cattle, and last week the offerings of prime cattle were the biggest since 2019.

The rush of numbers appear to have slowed cattle price rises, with the benchmark Eastern Young Cattle Indicator gaining just 1c/kg in the past week to close on Monday at 569c/kg carcass weight - but it has still risen 160c/kg in the past month.

Nutrien southern Australia livestock development manager Ron Rutledge said price rises in sheep and cattle were a result of a number of factors which had worked in the industry’s favour.

“We have rain in Queensland which has forced northern processors to look further south for cattle, and that’s lifted these rates,” Mr Rutledge said.

“In the lamb market, we have a lift in demand for bag lambs, some of which are going to feed those who have been conscripted in Israel.

“What that has meant for lambs is that we normally see 60 per cent of those weight lambs go to slaughter and 40 per cent to restockers, but now it is more like 75 per cent being slaughtered.

“This will have a flow on effect to the number of heavy lambs in autumn.”

What had also helped lambs was rain, with “most of Victoria south of the divide still green”.

This, Mr Rutledge said, would allow a more orderly sell off of stock rather than being forced to shift numbers due to feed concerns.

And it seems that the more red meat Australia puts onto the market, the more it can sell.

Official November export figures show red meat exports were up 35 per cent year-on-year with China the biggest customer.

Meat and Livestock Australia market analyst Emily Tan said beef exports rose 35 per cent (93,802 tonnes) compared to last November, while lamb exports lifted 30 per cent (29,869 tonnes) and mutton exports were up 39 per cent (19,849 tonnes).

She said China took 25 per cent more red meat compared to last November but the biggest lift in demand was to the United States, which imported 108 per cent more beef this November with 19,539 tonnes to make it the biggest customer for Australian beef this year.