29 March 2010

11 minute read

Oceania

Western Australia weekly cattle summary

Thunderstorms break dry south

The dry seasonal conditions continued in the north of the State, but despite this there is some speculation in forecasts that a cyclone may form over the next seven days. The southern regions of WA saw most areas receive heavy falls of rain from the now much publicised thunderstorm early in the week. Falls of rain were recorded up to 65mm and paddocks are now showing germination with producers hoping for further follow-up rain to ensure that green feed is maintained. The intensity of falls did create some water run off into dams and will aid in carrying capacity. Northern and eastern areas saw the largest falls recorded with many areas through the southwest seeing minimal readings. The strong demand for WA cattle from areas across the eastern states continues and this has had a positive affect on cattle prices, predominately vealer and young store grades with solid numbers having now left the state. Agents continue to comment that numbers of local cattle will constrict sharply after Easter, particularly if further follow-up rainfall is received.

Cattle numbers in saleyards remained buoyant with another large sale having been conducted in the Great Southern. Midland’s pastoral cattle numbers remain tight, but given the dryness of the northern season it is expected that early mustering will see a sharp increase in these numbers. The supplies of prime trade and heavy weight cattle remained limited at all three sales, as young store grades accounted for the majority of total numbers.

Solid trade demand

There were only limited numbers of prime vealers available with the vast majority being of light and medium store classes. A continued increase in feeder and restocker demand coupled with the recent eastern states inquiry again saw further gains in market values for medium and heavier drafts of calves. Lightweight classes on the other hand saw firm interest but again saw no premiums paid in comparison to their heavier counterparts. The very small supplies of prime trade weight yearlings again recorded a solid feeder and local processor competition. Rates were marginally dearer for both steers and heifers.

The small supply of heavy weight steers and bullocks has had an impact on market rates with dearer prices recorded due to an increase in trade competition. The strong demand seen in recent weeks for cows continued. Rates were again dearer at Midland early in the week, but this demand failed to maintain itself and values for prime heavy weight cows in the Great Southern towards the end of the week eased off. This was also the case in heavy weight bull classes but rates remained considerably higher than they were a month ago.

New South Wales weekly cattle summary

Young cattle dominate

Total throughput at MLA’s NLRS reported saleyards increased five per cent. With a number of sales being cancelled next week due to the Easter break some cattle were bought forward. After a reduced yarding last week Forbes jumped 63 per cent, at Armidale the yarding was up 12 per cent and Wagga rose 13 per cent. Numbers more than doubled at Goulburn as producers look for more rain to continue the autumn break.

Young cattle continue to make up the majority of the yarding with a noted shortage of well finished grown cattle for export slaughter, as the number of grown steers offered fell 14 per cent. Many of the young cattle offered lacked finish and feeders and restockers have continued to dominate the market. Lotfeeders purchased 65 per cent of the yearling steers offered with only 10 per cent obtained by the trade. Most of the vealer steers yarded went back to the paddock as restockers purchasing 70 per cent of the offering.

Prices struggled to maintain last weeks levels across all categories with less competition from Queensland buyers as yardings north of the border begin to increase. Young cattle experienced the largest falls with the average vealer steer prices falling 10¢ the heifer portion dropped 5¢/kg. Both steer and heifer yearlings averaged a 5¢/kg fall in price. Grown cattle were not immune to the cheaper trend, grown steers fell 4¢ and cows 6¢/kg.

Over the hooks rates remained firm to a little cheaper as supply pressures ease slightly and the high A$ continues to limit export demand.

Prices ease

Lightweight C2 vealer steers back to the paddock were down 9¢ making from 180.2¢ to 246¢ averaging 206.5¢/kg. Medium weights going to restockers averaged 203.7¢ a fall of 8¢, those going to kill also lost 8¢ to average 184.1¢/kg. Light and medium weight C2 vealer heifers to the trade lost 7¢ making from 167¢ to 193¢, those to restock lost 18¢ to average 188¢/kg. Feeders and restockers purchased most of the lightweight yearlings; C2’s going back to the paddock lost 4¢ to average 187¢ those to feed lost 5¢ averaging 191¢/kg. Medium weight C2 yearling steers to feed topped at 204¢ to average 184.7¢ a loss of 4¢/kg. Heavyweight C3’s to processors averaged 180¢ or around 334¢/kg cwt. Heavyweight yearling C3 heifers to the trade and feed both lost 5¢, with the former averaging 174¢ and the latter 171¢/kg.

Grown cattle also experienced a cheaper trend. Medium weight grown steers to lotfeeders made between and 145¢ and 189¢ to lose 5¢ to 6¢/kg. Heavyweights to slaughter fell 8¢ to 9¢ to average around 167¢/kg. Cows also fell but not as much as the other categories. Medium weight D2 and 3’s lost 3¢ to 6¢ to average around 272¢/kg cwt.

South Australia weekly cattle summary

Numbers retreat

The SA LE offered reduced numbers, while there was also an export cattle sale at Mt. Gambier on Monday; with only some buyers, agents and those selling cattle knowing much about it. A NSW buyer was heard to comment that it was one of the quietest sales he had ever been to. The move was made after last week’s very large yarding that had many cows being weighed late in the evening. This then put pressure on transport drivers to deliver stock, as they had used up many hours waiting for stock to be loaded even though they hadn’t been driving their trucks.

SA LE featured improved quality runs of mainly young cattle that sold to strong competition coming from feeders, wholesalers, local butchers and processors; at generally dearer levels.

Naracoorte’s smaller yarding featured excellent quality supplementary fed yearlings with the balance of the yarding being very mixed. This was particularly noticeable for the grown steers where age, quality and place of birth was questionable at times.

Mt. Gambier’s young cattle market on Wednesday, which despite the mixed quality offered sold to strong SA and Victorian competition, with feeder and restocker orders also very active.

Millicent’s numbers fell, as bean supplies dwindle, with the possibility that fortnightly sales are to commence soon.

Erratic trends

Due to the varying quality offered and a NSW operator now sourcing more local cattle; price trends fluctuated with only isolated sales of vealers attracting any protracted bidding. Vealer steers to the trade sold from 201c to 223c for the B muscled at dearer levels, while C3 sales were 5c to 10c cheaper selling between 186c and 204c/kg. Feeders and restockers sourced C2 steers from 178c to 205c/kg at dearer levels. Vealer heifers were generally unchanged to 7c cheaper with C3 sales from 174c to 216c/kg. However, there were isolated sales of C3 and B muscled heifers that sold from 224c to 237c/kg at dearer levels.

Yearling C3 steers were unchanged to 3c dearer selling between 165c and 190c, with C2 sales to feeders and restockers 155c to 190c/kg. Yearling heifers were 1c to 3c dearer with C3 and C4 sales 160c to 200c/kg and supplementary feds at the higher end. Grown steers were 1c to 8c cheaper with C3 to C5 sales 157c to 185c/kg, and averaging close to 320c/kg cwt overall. Cows were unchanged to 5c cheaper with 3 to 5 score beef cows selling from 120c to 160.5c/kg, or 250c to 300c/kg cwt.

Queensland weekly cattle summary

Numbers ease

The supply of stock at physical markets covered by MLAs NLRS fell seven per cent. Numbers at Longreach were down substantially following the previous weeks large opening sale. Nevertheless supply at selling centres in the south of the state generally experienced a lift in numbers.

With more properties becoming dry enough to shift stock numbers at the Roma store sale climbed 58 per cent. The spell of fine weather has also allowed restocker's the ability to access their stockyards and this has created more demand on lightweight cattle.

Overall quality at most centres was generally fair to good however some of the heavy steers and bullocks lacked finish compared to the previous weeks, as producers tended to offload stock prior to run of short working weeks.

Restocker's were the major buyers on calves and vealer steers and heifers plus light weight categories of yearlings. Prices for the remainder of the young cattle generally held firm with adjustments in places owing to quality. Feeder support continues to remain very strong with quality lines in demand across all weight ranges for both steers and heifers. Slaughter grades of heavy steers and bullocks tended to lose ground as the week progressed with heavy steers around 2¢ cheaper while bullocks lost up to 8¢/kg. However a portion of these losses were attributed to the drop in quality. Values for cows commence the week on a firm trend nevertheless prices at Warwick on Tuesday eased by 2¢ to 3¢, and by midweek average prices had slipped by 3¢ to 5¢//kg.

Export lines cheaper

Over 300 calves returned to the paddock at an average of 193¢ with some to 222.2¢, while slaughter grades mostly sold around 179¢/kg. A large sample of vealer steers were also purchased by restocker's with some to 233.2¢ while most averaged 215¢/kg. Vealer heifers purchased by restocker's averaged 184¢ and sold to 191.2¢/kg. Trade descriptions averaged 183¢ and local butchers paid up to 208.2¢ for heavy grades. Close to 550 head of lightweight yearling steers were purchased by restocker's at an average of 201¢ with some to 231.2¢/kg. Medium weight lines to feed made to 204.2¢ with a large sample just under 186¢/kg. A small selection of heavy trade lines made to 190¢ to average 181¢/kg. Lightweight yearling heifers to feed averaged 179¢ and restocker lines 187¢ with sales to 202¢/kg. Medium weight lines to feed averaged in the mid 170¢/kg range to 180¢ with sales to 187.2¢/kg.

Medium weight grown steers to feed averaged 178¢ and sold to 188.2¢/kg. Heavy steers to export slaughter averaged 2¢ less at 174¢ and sold to 188.6¢/kg. A good sample of heavy bullocks made to 185.6¢ to average 8¢ cheaper at 173¢/kg. Medium weight 3 score cows averaged 129¢, and good heavy cows averaged 5¢ easier at 140¢ the occasional sale to 153.6¢/kg.

Victoria weekly cattle summary

Mixed demand

Price trends were disproportionate across the state. There were varying factors behind all of the price trends with some relating to quality issues, some due to competition, and some due to weakening demand because of pressure on export markets. One other factor was the large increase in supply at markets in northern states, with the greatest gains being recorded in Queensland. Some disparity occurred between markets with buyers supporting sales where particular classes of cattle were well supplied, and there is a looming preference for post weigh markets.

Demand remained strong at all Gippsland sales reported by MLA’s NLRS with prices firm to dearer for vealers, young cattle and bullocks, while better quality beef cows sold at unchanged rates. It was only the lean cows best suiting the 90CL US market that suffered losses, as these cows suffered across all markets. This was due a fall in the FAS price for 90CL grinding beef, and the higher value of the A$.

At other sales most cattle sold to slightly cheaper prices. Some of this was caused by declining quality, and some by the increase in supply. The approaching public holidays caused by Easter played a part with a number of markets not occurring in the coming weeks. At Camperdown and Warrnambool there were plainer cattle yarded, contributing to a weaker trend. In the export sale at Warrnambool demand remained strong for bullocks and eased for cows. Supplementary fed yearlings were keenly contested and at Wodonga and at Shepparton there were a much larger proportion of dairy cows offered.

Gippsland prices firm

Prices at Gippsland sales reached 235¢/kg for B muscle vealers, which weighed as high as 440kg lwt, and there were multiple sales at the top end. This was particularly evident at Pakenham and Bairnsdale. Other good quality vealers across all markets were between 172¢ and 210¢ for C muscle vealers. There were once again a few exceptional sales of European steer vealers to opportunity feeders that reached 225¢/kg. A good supply of yearlings varied in quality and therefore price with steers making mostly between 165¢ and 190¢, as the heifers sold from 155¢ to 178¢/kg. Despite these good prices, the EYCI on Thursday eased 7.75¢ on last week to 347¢/kg cwt.

Prices for grown steers and bullocks eased at most markets, but Pakenham and Leongatha were fully firm. There was strong buyers support for the 1,300 head sold at these sales. Demand was better for 3 and 4 score beef cows, which made from 138¢ to 156¢/kg. The weaker trends for lean cows resulted in them making from 100¢ to 128¢/kg for the largest portion. Carcase weights average generally around 267¢/kg cwt.

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