AS THE drought continues to cut into the breeding herd, cow prices at prime markets have maintained a dearer trend, while the supply of females at store sales has waned in recent weeks.
Nationally, the medium cow indicator has been hovering about the 210 cents a kilogram (liveweight) mark and Meat and Livestock Australia have reported this level is due to global dynamics continuing to support Australian cow prices.
However, MLA forecast current conditions will likely continue to limit any significant upside, given the sustained high output of cows through saleyards as well as directly to processors.
During much of September 51 per cent of medium cows were sold through NSW saleyards, followed by 44pc in Queensland and only 5pc in Victoria, with almost all sales going to processors.
Although elevated female turnoff in 2018 suggested a reduction in supply for 2019, the throughput of cows in the eastern states has increased 60pc from the same period last year as many producers, particularly in NSW continue to destock.
MLA reported NSW cow prices have improved year-on-year, up 9c/kg to average 228/kg.
Due to increased interest from southern buyers, cows sold in NSW have been trading at a 25c/kg premium to Queensland. Qld cow prices have declined 18c/kg from 2018, averaging 202/kg.
At Carcoar prime sale on Tuesday the market was slightly easier than the week before, however some higher yielding cows attracted premiums in line with the increased yield potential.
The top pen sold for $1716 a head and in cents a kilogram sold as high as 240c/kg.
The market at Wagga Wagga on Monday may have felt the effect of the public holiday next week as there was a much bigger yarding of cattle offered this week.
The larger supply of cows applied pressure to prices over all categories. Prices were 4c/kg to 8c/kg cheaper and heavy cows sold to a smaller group of processors making 211c/kg to 263c/kg.
At Dubbo last Thursday better finished cows were 3c/kg to 5c/kg dearer. Processors paid as high as $1918 for a pen of cows, while most three and four score sold from 206c/kg to 259c/kg.
MLA didn't report the Gunnedah sale this week, however at Tamworth on Monday cow numbers increased and quality lifted, culminating in a 30c/kg dearer trend for the heavy yielding cows which topped at 257c/kg.
