21 June 2010

11 minute read

Oceania

Widespread rainfall brings hope

Much of WA received good rainfall this week with several fronts crossing the coast. This has been the largest rainfall most areas in the southwest of the state have recorded with many falls surpassing 30mm. This will aid struggling pasture and crop growth, which has been lagging given the very dry start that WA has seen this winter. Forecasts for the near future remain reasonably optimistic and given the late start to the winter season supplementary feeding continues across the majority of southern cattle growing areas. Conditions in much of the north of the state remain very mixed with tough times still expected. The numbers of cattle in saleyards this week was lower due to both time of year and the rainfall recorded this week in the agricultural regions. Combined with this there has been nowhere near the strong flow of plain pastoral cattle that has been expected out of the north of the state and this impacted Muchea's numbers. The Great Southern's sale was well back on the previous couple of weeks with numbers all but halved. The supplies of heavy weight local steers and heifers remained very hard to find irrespective of saleyard location.

Cow supplies also showed restriction this week with fewer numbers penned. Grain finished trade weight local yearling supplies were healthy with Muchea having larger and the largest numbers to be sold this week, while grass finished drafts remained in very limited numbers. The supplies of local store grades also declined this week, while the quality of pastoral cattle remained predominately of light weight store categories.

Cow and bull rates ease back

As is generally the case in the south of WA at this time of year vealer numbers were limited and confined to calf weights. Local retailer and trade demand for prime lightweight categories remains very strong with little or change recorded in rates. The solid supplies of grain finished yearlings were penned at Muchea and were predominately of medium and lightweights with only limited numbers were available in classes in excess of 400kg lwt. These heavier classes recorded similar trade demand, competition and subsequent values on both steer and heifer lines, while the increased supplies of medium and lightweights recorded slight losses in value with the majority purchased by the feeder sector. The mixed quality and generally lightweight of store local cattle continues to see mixed competition recorded. Feeder demand on heavier drafts of stores remained solid with restocker demand and rates spread over a wide range.

The cow market again saw a slightly more cautious demand realised from the local and export processors sectors and rates eased marginally, despite the fact that some moderate muscled drafts received premium rates. Heavy weight bull demand waned this week also, while a constant live export demand for lightweights saw these classes remain firm.

Queensland weekly cattle summary

A fall in supply

A combination of a short trading week due to the long weekend, and the reduction in market values experienced the previous week, overall supply at physical markets covered by MLA's NLRS fell 22%. There was also a noticeable drop in quality coming forward following the onset of winter conditions.

Buyer attendance was generally good across the state with a larger than normal number of NSW buyers present at the Roma store sale. Restocker's provided very strong competition on the steer portion in the young cattle sections with only small adjustments to prices in places due to quality. Demand from feeder operators on yearling steers eased 5¢ to 7¢/kg, resulting in the vast majority of yearling steers returning to the paddock as restocker's became the major buying force. Yearling heifers followed a similar trend to meet firm demand from restocker's and a lesser enquiry from feeder operators. However the overall shortage of well presented yearling heifers suited to the local trade market when against the cheaper trend to improve in value by 5¢/kg.

Medium weight grown steers suitable to feed followed the lower movement in price experienced in the young cattle sections. Heavy steers and bullocks to export slaughter generally held close to fully firm with a few supplementary fed grades improving the standard at Dalby. Cow values received very little change in price following the losses experienced the previous sale and despite the deterioration in seasonal conditions with largest percentage of the cows in the 3 and 4 score ranges.

Feeder grades eased

Calves returning to the paddock mostly sold around 198¢ with a few well bred grades reaching 234.2¢/kg. Vealer steers returning to the paddock made to a top of 220.2¢ with a fair sample averaging 207¢/kg. A large supply of vealer heifers averaged 174¢ with a small selection of heavy grades selling to local butchers at 203.2¢/kg. A large sample of lightweight yearling steers sold to restocker's at an average of 203¢ with a few sales to 222¢/kg. Medium weight yearling steers to feed averaged 7¢ less at 178¢ and heavy grades lost 5¢ with most around 177¢/kg. Lightweight yearling heifers returning to the paddock met firm demand to average 173¢ while local trade lines averaged 5¢ better at close to 169¢ with sales to 189.2¢/kg.

A small number of medium weight grown steers to feed lost 6¢ to average 170¢ the occasional pen reaching 180.2¢/kg. Bullocks generally sold around 173¢ with supplementary fed grades reaching 185.2¢/kg. Medium weight 2 score cows met strong demand from restocker's to average 123¢/kg. Medium weight 3 scores to processors averaged 125¢/kg. Both medium and heavyweight 4 score cows averaged 141¢ with the occasional pen of heavy grades reaching 156.6¢/kg.

Victoria weekly cattle summary

Numbers ease

Without Monday sales due to the public holiday, the supply of cattle at markets reported by MLA's NLRS declined just on 8%. However, even though there was a number of plainer condition cattle penned, the good autumn has assisting a lot of good quality cattle to be offered as well.

Although only a small yarding by most standards, the Bairnsdale sale offered numerous pens of top quality, high yielding vealers that reached the highest prices realised for the week. Also selling well were the other good quality vealers, yearlings and some of the grown cattle across all markets. The effect on the EYCI was positive, which recorded a rise of 1.25¢ to 350.50¢/kg cwt.

This increase is indicative of the demand for cattle with all processors very active at physical markets. Export processors opened the week with virulent demand for grown steer, bullocks, cows and bulls. This was due to some of them needed cattle to fill the kill space during the week. Some are in this position even though they are not working full week. While the grown steer and bullock prices did not reflect this demand, any downward price trends were due to plainer quality.

The opposite was evident for cows with all processors bidding strongly, particularly on the better quality beef cows suiting the boxed beef trade. Prices here were dearer, while some of the leaner cows were firm to cheaper. Once again, the potential for poor dressing percentages led to a small easing in prices late in the week.

Strong demand

Very strong demand for the best quality vealers at Bairnsdale saw pen lots of B muscle European breed calves make from 215¢ to 230¢/kg. Most other sales of B muscle young cattle were generally between 198¢ and 217¢/kg. Competition from feedlots and restockers was also very strong with a number of B and C muscle vealers were purchased between 175¢ and 211¢/kg. The C muscle cattle contributed to the increase recorded to the EYCI. Most of the better steers made from 170¢ to 196¢, and heifers 178¢ to 208¢/kg.

With demand for grown steers and bullocks being very strong across all markets, a slight improvement in supply was recorded. The top recorded was 192¢, most sales however were closer to 186¢/kg which was firm on last week.

Grown heifers and better quality beef cows were generally 2¢ to 5¢/kg dearer. Most made from 145¢ to 170¢/kg, and coupled with better prices for leaner cows at times, the carcass weight average was 295¢ with Leongatha reaching 300¢/kg. Heavy dairy cows reached 159¢ with most 1 and 2 scores ranging from 120¢ to 148¢/kg.

New South Wales weekly cattle summary

Long-weekend lowers supply

Saleyard throughput at markets covered by MLA's NLRS fell 25% compared to last week with no sales held on Monday. If Monday is taken out of the equation supply for the rest of the week increased 7%. CTLX, Dubbo and Gunnedah all had larger yardings. The Hunter Valley markets of Singleton and Scone recorded significant increases returning to more normal levels after much smaller yardings last week. In the north of the state numbers dipped a little at Casino where mostly vealers were presented while Inverell was well down following the public holiday. Numbers continue to dwindle at Armidale as cold weather takes hold and the end of the financial year approaches.

Most of the usual buyers were present and active across the markets eager to purchase any suitable pens. There were a couple of extra restocker orders present at Scone looking for well bred vealer steers to head west to finish on the feed that remains given the good season. They helped push medium weight vealer steer prices up 4¢ to average 207¢/kg lwt. Restockers purchased a larger percentage of yearling steers and heifers than last week, although cows purchased to return to the paddock fell from 28% of total cows offered last week to 17% this week.

Quality varied across all categories with the odd pen of young cattle suited to slaughter but plenty of lighter conditioned lots suited to restockers and lot feeders. Export grade steers remain limited at most selling centres and cows remain well represented with good numbers in most grades.

Prices vary

Prices varied depending on quality with restockers helping young cattle prices particularly vealers but grown cattle struggled to maintain recent price levels. Most of the vealer steers went back to the paddock at dearer rates. Medium weights were 1¢ to 2¢ dearer around the 201¢ with the few to the trade 5¢ stronger averaging 187¢/kg. Lightweight vealer heifers to restock averaged 172¢ and medium weights mostly sold around 178¢/kg. Medium weight C3's to process sold around 188¢ finishing 2¢/kg cheaper. Lightweight yearling steers to restock averaged 184¢ with the medium weights making around 190¢/kg both grades slightly cheaper. Feeders paid close to 185¢ for the medium weights to be 6¢ cheaper and the heavyweights holding firm. Medium weight yearling heifers to feed made 2¢ to 6¢ more while heavyweight yearling steers to the trade were around 3¢ cheaper around 174¢/kg.

Medium weight grown steers to feed sold 3¢ dearer averaging 174¢ and restockers paid an average of 166¢/kg. Processors paid around 171¢ for medium weights and 177¢ for heavyweights which were around 2¢/kg cheaper. Lightweight cows to restock were firm averaging 124¢ while medium weight D3's slipped 2¢ to 132¢/kg. Good heavyweight cows averaged between 138¢ and 143¢/kg.

South Australia weekly cattle summary

Smaller numbers

The South East was the only selling region due to the long weekend break, with Naracoorte kicking off the week with a similar sized yarding of mainly good quality runs that sold to solid competition. This emanated from the usual trade and processor buyers from both sides of the border, with the return of a NSW order after a long break adding some impetus to grown steer prices. This competition flowed onto to Mt. Gambier where were numbers were steady. Millicent agents yarded 323 mainly young cattle and cows for its fortnightly sale.

While export categories attracted strong inquiry albeit with the cows being slightly cheaper, although 145¢ to 174¢/kg lwt are not too shabby prices for medium and heavyweights. However, a lack of restocker inquiry at Naracoorte led to 1 and 2 score medium weights being cheaper, while Mt. Gambier's restocker prices rose to 158¢/kg for medium weights possibly in calf.

In a strange sale week most heifers, whether vealers, yearling or grown heifers were cheaper, while yearling steers remained basically unchanged and the grown steers were definitely dearer after a slow start. Even one monster weighing 790kgs sold at 180¢/kg to return in excess of $1,400/head at Naracoorte. Feeder and restocker orders were also active.

Cattle producers should be aware that Teys Bros Naracoorte last kill will be on Thursday 8th July before resuming on Monday 2nd August for their annual maintenance break. At this stage, T & R Pastoral are not going to close at Murray Bridge or Lobethal subsequently keeping both their cattle kill chains operating.

A cheaper trend

It was a week of generally lower prices, with only prime yearling and grown steers being dearer as buyers lowered their rates despite the smaller numbers being offered. Vealer steers in small numbers to the trade sold from 177¢ to 210¢ with isolated sales dearer and others 6¢/kg cheaper. Feeder and restocker orders secured the majority with C2 sales 185¢ to 205¢ and mainly 1¢ to 8¢/kg cheaper. Vealer heifers to the trade sold from 168¢ to 204¢, with C3 sales 4¢ dearer, and most others 2¢ to 3¢/kg cheaper. Yearling C3 steers sold from 184¢ to 200¢ to be 5¢ to 9¢ dearer, while C2 sales to a myriad of orders sold from 173¢ to 190¢ at fluctuating prices. Yearling heifer C3 and C4 sales were from 170¢ to 192¢ also at slightly dearer levels, with D3 sales unchanged to 11c less and mainly 154¢ to 173¢/kg.

Grown steers benefited from the NSW order, with C3 sales 182¢ to 199¢ or 2c to 4¢ dearer and mainly 335¢ to 365¢/kg cwt. Most cows were unchanged to 6¢ cheaper as most 3 to 5 score beef medium and heavyweights sold from 136¢ to 174¢, and mainly 290¢ to 325¢/kg cwt.

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