20 August 2010

11 minute read

Oceania

New South Wales Weekly Cattle Summary

Supply Steady

Total throughput across at MLA's NLRS reported physical markets remained relatively unchanged compared to last week. There were however some variations at individual markets as wet weather continues to have a bearing on numbers offered. There were fewer yarded at the sales held earlier in the week with Wagga, Gunnedah and Tamworth. These falls were offset by sales later in the week with larger yardings at Singleton, Casino and Dubbo where numbers more than doubled. Yearlings and cows were once again the largest supplied categories. There was a fair supply of grown steers with just under half total offering being penned at Dubbo.

The quality of young cattle was mixed with plainer young cattle showing the effects of winter and a fair supply of well bred unfinished lots suitable for feeders and restockers. Finished trade cattle were limited with at some selling centres however there were some supplementary fed and oats finished lines presented in finished condition. Strong demand from trade buyers meant last weeks rates for C3 yearling steers were maintained. Medium weights averaged 203¢ while heavyweights gained 3¢ to mostly sell around 191¢/kg. Restocker demand remained particularly strong with producers chasing young cattle. Medium weight vealer steers returning to the paddock averaged 214¢ while yearling steers to turn out averaged 204¢/kg.

Grown cattle also sold to a dearer trend despite the A$ remaining above US90¢, subdued overseas demand and a tough domestic trading environment. Heavyweight C3 grown steers averaged 2¢ higher at 184¢ and medium weight D3 cows improved 2¢ to average 141¢/kg.

Grown cattle dearer

Vealer steers to restockers remained firm to slightly cheaper compared to last week. Lightweight C2's sold to 236¢ to average 223¢/kg. Medium weight C2 pens eased 3¢ to average 214¢ while C2's to process sold around 208¢/kg. Lightweight C2 vealer heifers eased 3¢ to 213¢ as medium weights were firm around 205¢/kg. Lightweight C2 yearling steers returning to the paddock reached 233¢ to average 5¢ lower at 208¢/kg. Feeder buyers paid similar rates to last week at 209¢ for lightweight yearling steers and 2¢ less at 201¢/kg for medium weight C2's. Heavyweight C2 yearling steers to feed reached 205¢ to average 191¢/kg. Lightweight C2 yearling heifers to feed and slaughter both averaged 3¢ lower at 186¢ and 188¢/kg respectively. Lightweight C3 heifers to the trade gained 6¢ to 201¢ as medium weights sold 3¢ dearer at 194¢ and heavyweights made around 183¢/kg.

Medium weight grown steers to feed slipped 6¢ to 177¢ as those to processors sold around 174¢/kg. C3 and c4 bullocks gained 2¢ to 3¢ to average 183¢/kg. Cows mostly sold to a dearer trend, Lightweight D2's gained 4¢ to 125¢ and heavy D4 cows averaged 5¢ higher at 154¢ after reaching 165¢/kg.

SA Weekly Cattle Summary

Smaller Yardings

Numbers fell by around a third at the SA LE, while Naracoorte's first split sale for 2010 attracted 1,485 head of mainly young cattle and grown steers. Mt. Gambier had a similar sized yarding as numbers remain stable in the Lower South East after some more heavy rainfall.

While most of the usual buyers were operating at the SA LE, one Victorian wholesaler was absent. Feeder orders were thinly spread which also contributed to the lower prices being paid. However, limited numbers of vealer steers averaged 213¢/kg. Small numbers of grown steers and cows met with mixed fortunes, with the steers generally unchanged and the cows mainly cheaper. Naracoorte's and Mt. Gambier's sales attracted the usual SA and Victorian trade and processor competition, with once again a NSW grown steer order merely an onlooker. However, with many yearling steers being too heavy, and some heifers carrying too much condition, some buyers were a little hamstrung. In a strange scenario the strong demand for grown steers, witnessed those prices being some 10¢/kg dearer than the prime yearling steers.

Limited numbers of vealer steers were offered and sold mainly to the trade, with feeders and restockers also active. Most yearling steers and heifers in good quality runs of grass and supplementary feds sold to solid competition, with only limited sales below the 180¢/kg mark.

Grown steer and grown heifer sales despite many being in 4 and 5 score condition were dearer, with beef and dairy cows also attracting strong competition from processors and restocker orders at mainly dearer levels.

Solid Competition

Even with the SA LE attracting soft competition at generally lower levels, there was solid competition for all categories in the South East at mainly dearer levels. Vealer steers to the trade sold from 185¢ to 221¢ to be 1¢ to 4¢/kg dearer. The C2 steers to feeder and restocker orders sold from 188¢ to 215¢/kg. Vealer heifers in increased numbers to the trade sold mainly from 180¢ to 221¢ to be unchanged to 14¢/kg dearer. The C3 yearling steers remained basically unchanged selling from 167¢ to 205¢/kg. Feeders sourced C2 steers mainly between 178¢ and 210¢, with some dearer and others cheaper. Yearling heifer C3 sales were 3¢ cheaper selling generally between 155¢ and 195¢/kg.

Grown steer prices were 1¢ to 11¢ dearer as most C3 and C4 sales ranged between 178¢ and 205¢, and averaged close to 350¢/kg cwt statewide. Most grown heifers attracted prices between 152¢ and 179¢, with C muscled sales 3¢ to 12¢/kg dearer. Restockers sourced D1 and D2 beef cows from 132¢ to 146¢, with most D3 to C6 beef cows to processors selling from 143¢ to 170¢ at rates mostly 1¢ to 6¢ dearer, and mainly in a 285¢ to 325¢kg cwt price range.

WA Weekly Cattle Summary

More Rain in the South

Much of southern WA again recorded reasonable rainfall despite eastern areas continuing to see little or no moisture once again. The largest falls continued to be seen in coastal areas but despite this annual rainfall remains well below average. The low rainfall in the southern Ag districts has seen lack of runoff in storage dams almost throughout the entire southwest and this is becoming a growing concern for producers and their ability to carry stocker throughout the drier months. There was also some rainfall seen in the north of the state but despite this conditions in the majority of the pastoral regions remains very dry. The cold and dry start to this year's growing season has adversely affect crops and despite the recent rainfall producers continue to comment that yields in both hay and cereal crops will be below average. Pasture levels in the traditional cattle areas of the southwest are fair, but most areas continue to struggle with tight feed conditions, again hindered by the dry start and earlier heavy frosting that was seen. Consequently there still remains some supplementary feeding of cows and calves in some areas.

Saleyard supplies remained low in both the southwest and Great Southern this week as Muchea continued to be the largest of the three weekly sales. Pastoral cattle supplies from the north remain solid to both Muchea and southern processors. The supplies of trade weight yearlings remained limited in saleyards as did those for both heavy weight export grades of steers and heifers, while cow volumes were again only limited.

Cow rates improved

There was a slight increase in the numbers of vealers seen this week with the majority remaining of lightweight. Quality continues to be very mixed with a similar demand seen from both the trade and restockers. There was an increase in the quality of grass finished trade weight yearling steers and heifers were slightly better. This factor coupled with the short supplies and an increased processor demand saw a slight rebound in values. Grain finished yearling supplies remain tight in both physical sales and those direct to works. This has seen a recent increase in over-the-hook pricing levels. Grain finished numbers in saleyards were limited with quality and weight once again very mixed. The quality of store locally bred agricultural cattle also remained mixed with the majority remaining of lighter weights less than 300kg lwt. Better quality drafts enjoyed a reasonable feeder and restocker demand with both steers and heifer throughout the classes recording slight increases in values.

Heavy weight steers and heifers remained relatively limited in supply and again there was a slight resurgence in trade demand and competition. This was also seen in cow categories with dearer rates seen, particularly at the Great Southern sales later in the week.

Queensland Weekly Cattle Summary

Large increase in supply

A return to fine weather across a large portion of the state resulted in supply at physical markets covered by MLA's NLRS climbing a massive 48%. Numbers at markets early in the week generally experienced only small variations in supply. However by midweek at Dalby, Longreach and Roma numbers dramatically increased as the bottleneck of cattle from the previous week's rain affected supply flowed into the saleyards.

Cattle from the Northern Territory are starting to move south as some stations are sending cattle as far south as Singleton in NSW and feedlots at Dalby. The goal posts have been moved for northern producers and markets are much further to reach as the Indonesian weight restrictions on cattle for live export take effect. Freight is expensive plus time-consuming. Producers are conducting trials to see what their best options are.

Values at physical market for young lightweight cattle at early week markets continued to climb in price however demand tended to taper off on the heavy yearling's. Nevertheless by midweek calves and vealers and lightweight yearling's lost the large increases in values experienced in recent weeks, with average prices around 10¢ to 20¢/kg cheaper.

The extra export processor demand in places resulted in heavy steers and bullocks improving 2¢/kg. Cows across all markets generally sold to firm demand with only small variations in average prices either side of the previous weeks rates.

Young cattle cheaper

Calves to restockers averaged 9¢ cheaper at 209¢ with occasional sales to 235¢, while trade descriptions fell 20¢ to average 194¢/kg. A large sample of vealer steers returned to the paddock 6¢ easier at 221¢ and sold to 239.2¢/kg. A large selection of vealer heifers to the trade lost 20¢ with most around 180¢ the very occasional heavy grade to local butchers reaching 221.2¢/kg. Lightweight yearling steers to restockers were once again well supplied and averaged 1¢ less at 206¢/kg. Despite a fall in feeder values as the week progressed medium weight lines across all markets remained firm at 196¢ with a few pens to 219.2¢/kg. Heavy yearling heifers to the trade averaged 3¢ dearer at 179¢ a few supplementary fed grades to 205¢/kg.

Heavy steers to export slaughter averaged 2¢ better at 180¢, and bullocks improved and averaged a similar amount with a few sales to 190.2¢/kg. Medium weight 2 and 3 score cows to processors averaged 121¢ and 131¢/kg respectively. A reasonable supply of good heavy cows made to 160¢ with most close to 149¢/kg.

VIC weekly cattle summary

Supply Tight

Plenty of ran has fallen in recent weeks which has resulted in around 4% fewer cattle being yarded. This in turn forced competition to increase for nearly all categories at markets reported by MLA's NLRS. Large areas of the state have received between 30 and 80mm of rain over the past week as Wodonga's young cattle market suffered the largest decline as the yarding was reduced by 30%.

The price increases started from the outset and highlighted by the Pakenham young cattle sale achieving the highest prices for a long time. This trend flowed through all markets affecting both young and grown cattle. By the end of the week Bairnsdale vealers and supplementary fed yearlings made to 240¢/kg. Feedlots, producers, local and export processors all combined to create the outcome. Secondary classes of young cattle were swept up in the euphoria, and sold to the trade and feeders at solid prices.

The EYCI reached its highest level for a number of years of 369.50¢ on Tuesday, but at the completion of Thursdays markets have eased to 367.50¢ which was 5.50¢/kg cwt higher week on week.

Lack of supply was also the main factor that drove grown cattle prices to higher levels although gains were varied amongst the markets. Grown steers and prime bullocks started the week under strong demand and progressively got dearer during the week. Considering the high value of the A$, this result was very good. However, keeping abattoirs operating rather than putting off staff remains a preferred option for processors.

Prices dearer

Around 5% of the total number offered were good quality B muscle cattle that made between 190¢ and 240¢/kg. With the interaction between feedlots, restockers and trade buyers remaining very strong a large number of C muscle vealers and yearlings made between 175¢ and 210¢/kg. Heavyweight B2 vealer steers gained 6¢ on last week to average 220¢ while heavyweight C3 yearling steers to slaughter improved 4¢ to average 193¢/kg. As it is winter there are some plain cattle around, which made from 145¢ to 185¢/kg. Lightweight yearling steers returning to the paddock sold firm to 10¢ dearer with the C muscled lots mostly selling in the mid 190¢/kg range.

A slight improvement in the supply of grown steers bullocks, and good competition pushed prices to 199¢/kg. Most prime C muscle bullocks made between 178¢ and 196¢ with grown steers making to 202¢/kg. At times cow prices were up to 10¢/kg dearer, and this was across all categories. Good quality beef cows made from 148¢ to 170¢, as the larger framed Friesian made between 142¢ and 162¢/kg. Coupled with leaner and lighter weight cows which cold from 110¢ to 142¢/kg, the carcass weight price average was 305¢/kg.

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