THE cattle market hangs in the balance according to Meat and Livestock Australia, with the price direction in the short-term dependent on how the season plays out in the lead up to summer.
MLA’s market intelligence manager Scott Tolmie said if the positive rainfall outlook for eastern Australia in October comes to fruition, this will go a long way to supporting young cattle prices.
In the past week the cattle market has continued its march higher and the Eastern Young Cattle Indicator was on 545 cents a kilogram (carcase weight) which was up about 15c/kg on the same time last week.
This was on the back of a rain-induced surge in prices a fortnight earlier.
Other categories of stock were also dearer again this week.
Heavy steers (500kg to 600kg liveweight) averaged 276c/kg (lwt) in NSW which was about 5c/kg more than last week. Cows to slaughter averaged 214c/kg on the back of almost a 20c/kg lift in the past fortnight.
Although limited in supply, store stock prices have surged too. At Carcoar store sale last Friday most categories were $60 to $80 a head dearer than last month’s sale.
These rates are a positive shift from results compiled by MLA early this week as part of its quarterly cattle market projections report.
Mr Tolmie said the EYCI averaging 560c/kg in the September quarter, as restocker buying activity waned due to limited rainfall across much of NSW and Queensland.
“Ongoing dry conditions were the major driver behind the reduction in producer market activity,” he said.
“However, rainfall in early October saw the EYCI kick, regaining 25c/kg cwt during the first week of October – a clear indication of the likely response if a more complete seasonal break arrives.
“In particular, the restocker steer indicators in NSW and Queensland each lifted 6pc across the week, with producers outbidding all other buyers in the market.”
Mr Tolmie said the availability of lightweight stock through markets remains limited with the herd rebuilding cycle still underway, which should see prices continue to track above the five-year-average for the remainder of the year.
