YOUNG cattle prices remain much lower than producers would like, but a combination of the short trading week and forecasts of rain in some regions last week helped stem the fall in values.
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The Eastern Young Cattle Indicator early this week was about seven cents a kilogram (carcase weight) stronger and finished Tuesday’s trading on 290.75c/kg.
Meat and Livestock Australia (MLA) market information and analysis manager Tim McRae said restocker activity and demand for heifers continued to drag the price down.
“There are very few areas in NSW which have the feed or seasonal conditions to be purchasing these types,” he said.
At the same time he said further slips in price could still be on the cards, but depended on rain especially in Queensland during the next few weeks.
Mr McRae said national cattle supply for January at markets reported by MLA’s National Livestock Reporting Service was up 15 per cent year-on-year, with almost all States recording higher throughput, underpinned by the prolonged hot and dry conditions across the eastern States pressuring producers to offload stock.
“Furthermore, consignments are reported to have a larger proportion of lightweight young cattle, particularly in the vealer and yearling categories, while grown cattle numbers have increased substantially in NSW and Qld,” he said.
The jump in supply was a lot more obvious in NSW where young cattle yardings bounced 43pc and grown cattle lifted by more than 50pc year-on-year.
“Usually, Qld and northern NSW receive good summer rainfall throughout January, however, this has failed to eventuate this year,” Mr McRae said.
“Qld young cattle throughput increased 16pc, consisting mostly of yearling steers, while grown cattle throughput remained similar to the previous year, at about 10,800 head.”
So far in 2014, close to 87,000 young cattle have passed through NLRS reported saleyards across the nation, with 75pc of these classified as C-muscled lines, back 10pc on the five-year average.
The last time January turnoff was higher than this year was in 2011, and Mr McRae said this was due to two years of consistent rainfall, coupled with favourable livestock prices, which enticed producers to offload.
“In that year the proportion of C-muscled cattle reached a high of 93pc,” he said.
There were also fewer cattle offered on AuctionsPlus last week although supply was boosted by a feature weaner sale in Victoria
Anna Adams from AuctionsPlus market operations said prices for light steers dropped about 10c/kg on the previous week, selling from 119c/kg to 182c/kg, to average 167c/kg.
“Heifers less than 250kg closed the gap, averaging 156c/kg,” she said.
Ms Adams said there were plenty of younger, lighter weaners offered that were not able to be held by breeders until the traditional autumn sales.
“I would expect this to continue in the next couple of months,” she said.
“Come April and May, weaners being sold in the north with any weight about them will be scarce.”
Karen Bailey
The Land's markets editor.
The Land's markets editor.
