HEAVY rain fell, as predicted, across a large area of the eastern seaboard at the weekend and beyond. Falls as high as 100mm or more drenched the north east of Victoria and Riverina, and well into NSW and Queensland. South Australia and Tasmania also got a drenching, and all of this rain created an immediate supply shortage.
Wagga Wagga on Monday recorded its smallest yarding for a long time, and coupled with other smaller sales the same day, prices increased anywhere from 2-20 cents per kilogram liveweight in one day.
Much of this increase was sparked by less restocking cattle, therefore increased demand, and equally processor demand was much stronger as they sought cattle for this week’s kill.
This effect was immediate, and improved as Tuesday rolled on with high quality grain assisted yearling steers reaching 348c/kg at the Wodonga trade cattle sale.
It was interesting to watch buyers at Pakenham, Monday, as there was only 1,100 cattle penned. The quality was quite good, and included a good supply of grain assisted cattle. The pick of the butcher shop vealers reached 340c/kg, but it was the strength of demand for other vealers with nearly all making 300-335c/kg.
Spurring this strong demand was competition from feedlots, and this situation was seen at all markets, Monday and Tuesday. Wagga is the best example where of the 1,024 yearling steers recorded by MLA in their report, only 28 were purchased by trade buyers. Prices were noted here, making mostly from 285-335c/kg lwt.
Also noted at this sale was competition from a Queensland processor, which spurred competition for heavy trade and export steers and heifers.
Notable quotes for some of these heavier cattle are grown heifers selling to 307c, prime steers to 325c, and bullocks peaking at 312c/kg lwt.
However, some of the larger price increases were seen in the next grade down with numerous cattle penned “just off the top”. Many of these sales, both steers and heifers were up to 20c/kg dearer.
It was almost similar to the days later in 2015 when cattle prices were at their peak, when watching the competition. Unless the cattle, both steers and heifers, were very poor, or badly bred, that they didn’t suit any feedlot order, that prices dropped below 260c/kg lwt.
When analysing the cow market reports over the past seven days, it appeared there was a lot more lean dairy cows penned. According to some reports, a larger percentage of empty cows are being sold, as joining has been worse during the dry. However, dairy farmers are exiting any cows not performing to their full potential because of the recent drop in milk price.
A lot of lean cows sold between 140&190c/kg this week, however, Camperdown cow sale, Tuesday, was the only one quoted with easing price trends. All other markets were dearer.
A depreciating supply of better quality beef cows saw strong demand lift prices with most selling from 225-255c/kg.
