Why Victorian cattle prices can’t keep pace with record sales in the north
No one predicted the Eastern Young Cattle Indicator would crack 1000c/kg, but the reality for southern producers is very different.
$10 a kilogram is no longer a dream but the new reality for some Queensland cattle producers selling young cattle.
The benchmark Eastern Young Cattle Indicator has done what nobody predicted, last week cracking the 1000c/kg carcass weight average price mark at saleyards where rates are recorded.
It inched even higher on Monday, sitting at a record 1003.62c/kg carcass weight.
But an analysis by The Weekly Times shows the reality for southern producers selling cattle last week in Victoria was around 100c/kg cheaper.
The indicator is heavily skewed towards Queensland where huge yardings at Roma and Dalby make up the bulk of the prices included in the average. An analysis shows the ratio of Victorian to Queensland young cattle in the indicator calculation last week was 1:20.
In Queensland yards the average return was 1010c/kg carcass weight, as restockers buoyed by a good season stormed markets to secure light cattle to add weight to. This is compared to Victoria’s recorded saleyards where there was an average price of 901c/kg.
Meat & Livestock Australia analyst Stephen Bignell said the indicator crashing through 1000c/kg last week was “a bit weird” given the number of cattle sold had also increased, yet demand continued to lift.
Driving this was restockers with grass, mainly chasing young steers to add kilos to.
He said big yardings in Roma and Dalby in Queensland dominated the yardings.
Despite the slightly lower returns in Victoria, sky high rates were still achieved.
At Victorian store sales agents reported young cattle were returning hefty prices.
At Wodonga steers weighing between 250-300kg attracted the highest cents-a-kilogram rates, consistently above 600c/kg liveweight.
Corcoran Parker auctioneer Leigh McEvoy said if “quality was there, people were prepared to pay a premium”.
At Pakenham, Nutrien livestock auctioneer Andy Grant said each week agents were astounded by the ongoing price rallying.
“It’s a lot of money people are investing … but it’s all proportional,” he said.
“The greatest thing is, you buy the cattle now, and you’ve got all spring to improve them. Even if you think you paid too much now, the season will get them through.”
MORE
Understanding varied lamb price forecasting
When livestock markets seem to be influenced more and more by confidence and the mental state of producers, are price predictions helpful or not?
Growers lean on broker credit to pay shearers
Tight cashflow for sheep producers has led to an increase in Wool Advances, as brokers raise concerns about slipping volumes.