23 January 2009

11 minute read

Oceania

South Australia

Numbers slip overall

Cattle numbers rose at the SA LE in a mixed quality yarding that sold to fluctuating competition from the usual buyers. Feeder and restocker orders were very active who sourced a large number of vealer steers and yearlings at fluctuating prices. Most export categories attracted a weaker trend, with only bulls selling at mainly dearer levels.

Mt. Gambier had a similar sized yarding of export cattle, with grown steers numbers falling due last week’s lower prices. There were increased numbers of cows offered in good quality runs, with the last agent probably having the best sale after the early runs had attracted a weaker trend. Grown steer prices slipped further as most rates fell below 165¢, before good quality medium weights later in the sale peaked at 170¢/kg despite the lack of input from a regular NSW buyer. Strangely like the SA LE, most bulls attracted a dearer trend even though 156¢/kg was the highest price for heavyweights.

Naracoorte’s young cattle sale contained was also reduced and witnessed quality slip that allowed the regular buyers to lower their rates even further.

Mt. Gambier’s yarding declined for its young cattle sale in mainly good quality runs that like most other sales tended to attract a weaker trend. There were only isolated sales dearer where weight and quality suited. This due to many vealer steers being too heavy, and many heifers showing too much condition.

Millicent followed the trend with less cattle penned although most were good quality young cattle.

Easing in prices

It was another week of generally lower prices, with only isolated sales being dearer. Feeder and restocker orders sourced a large percentage of vealer steers at rates between 160¢ and 184¢, with prices varying from 1¢ to 11¢ cheaper, and 1¢ to 2¢/kg dearer. Trade purchases tended to range between 162¢ and 191¢, or 1¢ to 9¢/kg cheaper. Vealer heifer sales were erratic again with some dearer and most 1¢ to 9¢/kg cheaper, as most sold in a 145¢ to 189¢/kg price range to mainly trade competition. Yearling steers attracted a wide range of orders mainly between 140¢ and 176¢ to the trade, with feeder orders paying up to 185¢/kg for lighter steers. This left most sales unchanged to 11¢/kg lower. Yearling heifer sales followed suit as the majority attracted rates 2¢ to 10¢ cheaper, with C3 sales between 140¢ and 160¢, and the D3’s from 120¢ to 145¢/kg.

Grown steer prices fell another 3¢ to 9¢ with C3 and C4 sales ranging between 150¢ and 171¢, and carcase weight prices back around 290¢/kg despite a weakening A$. Cows were generally 2¢ to 5¢ cheaper, with only isolated sales dearer, and most carcase weight prices between 230¢ and 265¢/kg.

Queensland

Larger numbers

Numbers continued to climb to higher levels. With only selling centres in the south of the state operating supply lifted by 44% at markets covered by MLA’s NLRS. The recent hot weather drying off available feed combined with the uncertain nature of the export market encouraged producers to offload larger numbers sooner rather than later. A large panel of buyers were present an active at most markets, however values fell across-the-board. Young cattle at markets early in the week experienced losses of 8¢ to 10¢/kg, while those not meeting market specifications suffered larger losses, and there was a wide variation in quality with most suitable to feeders or restockers. Only token amounts of steers and bullocks were penned; however there was a fair line-up of cows available. Yearling steers lost 6¢ to 10¢ for the feeder and restocker lines, while slaughter grades were up to 15¢/kg cheaper. Yearling heifers suffered the greatest losses of generally 15¢ to 20¢/kg, with some grades falling over 20¢/kg.

Steers and bullocks were cheaper and cows lost 6¢ to 8¢/kg. Nevertheless as the week progressed and numbers soared to much higher levels larger losses in values were experienced. Quality at midweek markets was generally good with export grades in the 3 and 4 score ranges offered along with good lines of yearlings with both feed, restocker and slaughter descriptions well represented. Export slaughter lines of heavy steers and bullocks were cheaper by 9¢ to 12¢, while medium weight grown steers to feed for the export market only lost 3¢/kg. Cows were cheaper however losses were confined to around 3¢ to 6¢/kg.

All classes cheaper

Calves to restockers across all markets met a solid inquiry to average close to 205¢ with sales to 220.2¢, and slaughter grades averaged 192¢/kg. Vealer steers to backgrounders lost 11¢ to average 191¢ with some sales to 205.2¢/kg. Vealer heifers to the trade averaged 6¢ less at 178¢, with only B muscle lines making to 204.2¢/kg. Lightweight yearling steers to restockers were 16¢ cheaper at 177¢ with sales to 199.2¢/kg. Medium weight feeders fell in value by 10¢ to average 171¢ with a few pens reaching 183.6¢/kg. The largest samples of medium weight yearling heifers to the trade averaged a loss of 14¢ with most around 157¢, while D muscle grades were in the 140¢/kg range.

Despite the large fall in export slaughter values medium weight grown steers to feed lost 3¢ to average 175¢, with some consignments reaching 180.2¢/kg. Heavy steers to export slaughter averaged 6¢ less at 170¢ with sales to 180.6¢/kg. Good heavy bullocks lost 11¢ with most sales around 168¢ the occasional pen to the wholesale meat trade made to 190¢/kg. Medium weight 3 score cows averaged 2¢ cheaper at 128¢, and the better grades 4¢ cheaper at 133¢/kg. Good heavy cows made from 130¢ to 146.2¢ to average 5¢ less at 135¢/kg.

New South Wales

EYCI slide

Supply across MLA’s NLRS reported markets has eased, albeit only around 4% when compared to last week. The hot weather has hampered mustering in some areas while the easing prices may have stopped some producers from selling.

Quality has been mixed which is also due to the seasonal conditions. There have been plentiful supplies of plain and store conditioned cattle penned with properly finished lines still available but in declining numbers. In the grown steer section the slipping condition is evident by the limited number of 4 score medium and heavy weights. Bullocks were also dominated by 3 scores.

At some markets it was noticeable that not all the regular buyers were operating at full capacity. This caused prices to fall with very few categories immune from the reduced demand. Trade cattle were 5¢ to 10¢/kg cheaper with some indicator grades suffering larger falls. Grown cattle lost 2¢ to 10¢ despite the fall to the A$. A similar trend has been witnessed across other states and is highlighted in the decline of the EYCI.

Since the beginning of the year, the EYCI has slipped 17.5¢ and at the completion of Thursday’s markets was 315.25¢/kg cwt. This is the lowest level since early May 2008. This declining trend has been due to a number of factors including the subdued feeder and restocker interest at prime markets as they were active at recent Victorian weaner sales. Trade buyers have also been selective in their purchases with most attention focused on the higher yielding finished lots.

Prices ease

Most calves returned to the paddock selling over a range from 170¢ to 193.5¢ as those to the trade sold from 173¢ to 183¢/kg. Light vealers to slaughter fell 11¢ to 192.5¢ as similar lines returning to the paddock eased 9¢ to sell around 197.5¢/kg. The medium weights to restockers were less affected, to be 3¢ cheaper at 186¢/kg. The large run of light and medium weight vealer heifers suffered the greatest losses of between 17¢ and 22¢ and mostly sold from 177¢ to 188¢/kg. There were some C3 medium weights that made around 179¢/kg selling to processors. Light yearling steers to feeders and restockers were close to firm at 177¢/kg. Medium weight and heavy yearlings to feeders slipped 5¢ to 9¢ and ranged from 164¢ to 170¢/kg. Only a small number of medium weights went to slaughter around 172¢/kg. Large numbers of light yearling heifers to feeders and restockers ranged from 155¢ to 158¢/kg. Medium weight feeders lost 8¢ to 153¢ as those to slaughter fell 13¢ to 153¢/kg.

Medium and heavy grown steers to slaughter were 6¢ to 11¢ cheaper and ranged from 150¢ to 154¢ with isolated sales to 170.2¢/kg. Medium weight cows lost 3¢ to 122¢/kg.

West Australia

Cattle numbers sustained

Thunderstorm activity continues in the far north of the State with a reasonable start to the wet season having been recorded. The southern Ag districts of WA have had a week of milder and cooler weather after the past month of very hot temperatures. The vast majority of districts remained fine and dry, even though there was some sporadic and isolated thunderstorm activity which brought isolated rainfall to some parts of the wheatbelt. The southwest districts of the State have now “hayed off” and this has seen a large turnoff of cattle, primarily vealers, which had been held on to longer than would normally have been the case. Pasture feed levels are now on the decline and it won’t be too long before supplementary feeding will begin with the first f this year’s calves have already begun to drop. Cattle numbers remained large this week with the Great Southern once again the largest sale centre with its Thursday vealer sale approximating 3,000 head. This trend is expected to continue over the next month or so. Additionally to this were again regional annual feeder sales. The majority of cattle sold were sourced from local areas with only limited numbers of pastoral cattle having been penned. Vealer supplies were large, while trade weight yearling supplies continued firmly as heavy weight steer and heifer supplies remained limited.

Cow volumes maintained their recent buoyant levels, but with the State’s largest export works announcing this week that it will close for nine days from the beginning of next week it is doubtful these levels will be sustained.

Trade demand cautious

The late turnoff of southern vealers continued to maintain the good weight levels seen recently with quality also solid. Despite an underlying uncertainty of where the market will head in coming months the rates for both steer and heifer vealers were maintained irrespective of weight, quality or sex. Local trade, feeder, restocker and a selective live export demand were all recorded at recently seen levels. There were both good supplies and a reasonable quality evident in the trade weight yearling steer and heifer yardings. A weaker local trade demand was realised on grass finished trade yearling steers and this caused rates to fall by as much as 10c/kg lwt average. Trade weight yearling heifers on the other hand maintained their levels for an average of 135c/kg lwt.

There was little change in the rates of either bullocks or export weight steers in excess of 500kg lwt. The very small numbers of heavy weight heifers continued to make quoting difficult, even though rates were similar. There continued to be very good supplies of heavy weight cows. A weaker trade demand was recorded throughout the week that caused rates to fall with 3 and 4 score cows lower by a further 4c/kg lwt.

Victoria

Supply falls

The best way to describe price trends for this week was cheaper. Competition was very indifferent with some categories short of buyers, while others had all of their regular buyers but purchases were reduced. If there was any recompense for producers, cow prices were the least affected after a small turn around in the demand from the US. All this occurred despite a fall in supply of nearly 3,000 head at markets reported by MLA’s NLRS.

It appeared that most supply reductions were price related, but the largest falls were at Leongatha, Shepparton and Wodonga, and grown cattle were most affected. There was very hot weather at the northern markets of Shepparton and Wodonga. The only highlight was a supermarket buyer stepping into Pakenham on Monday, purchasing good quality B muscle vealers of heavier weights. This lifted prices for these vealers, but it was the only joy for the week.

It is the first week of traditional hot summer weather, as some of the cattle showed signs of slipping quality, particularly vealers. This was part of, but not all of the reason behind a fall of 13.25¢ in the Eastern Young Cattle Indicator (EYCI) figure of 315.25¢/kg cwt.

Equally very noticeable was the lack of demand for grown steers and bullocks, despite there being greatly reduced numbers offered. Although cheaper, cow prices reflected the need for numbers to kill, as the price for 90CL grinding beef holds it’s own. While processors want to buy cows cheaper, the carcass weight price average was above direct price offers. Bull prices were also cheaper.

Prices slip

Despite there being strong demand from lot feeders for all weights of steers and heifers, prices were still 2¢ to 5¢/kg cheaper for a large number of C muscle vealers and yearlings. With that extra competition at Pakenham for B muscle vealers the top price for the week was 199¢/kg. However, this did not reflect the general trend, as most made between 168¢ and 185¢/kg. Lot feeders set some of the higher prices for C muscle cattle at around 178¢, but there was a big variation between trade purchases and feedlots with most making from 135¢ to 165¢/kg. Yearling heifers still offer the cheapest meat off the bone.

While grown steer and bullock price falls averaged 2¢ to 6¢ cheaper, some large falls of up to 12¢/kg were quoted at Wodonga. Prime C muscle pens made anywhere between 143¢ and 170¢/kg.

With the 90CL price holding around 370¢/kg cwt, demand was the best for plain 1 score cows. Prices for these were from 3¢ cheaper to 6¢ dearer, making mostly from 80¢ to 120¢/kg. Beef cows of better quality were up to 6¢ cheaper making between 108¢ and 138¢/kg. Bulls averaged 127¢/kg overall.

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