SUPPLY trends were the exact opposite week-on-week with Pakenham’s Monday market 30 per cent larger, and all other sales smaller. This was especially so at Wagga Wagga, Monday with a big reduction of over 20pc, or some 950 head fewer.
One of the main driving factors behind dearer price trends this week was the increased competition from restockers for a broad range of animals. Solid purchases were noted from lightweight steer calves to poor condition dairy cows with producers looking for the best options, money wise.
The strength of this competition took away some of the positive trends of trade purchases. Increased competition lifted the range and quality of cattle purchased, which saw some of the market trends in MLA’s markets reports, actually come out lower week-on-week.
When analysing the MLA data, the number of young and yearling cattle on offer fell, and the restocker competition increased, so the overall percentage purchased by the trade fell.
To be truthful, the supply of vealers has reached it’s winter slump, and butchers looking to the best quality paid from 300-347 cents per kilogram liveweight. Secondary grades made from 270-325c with some of the lighter weights to 370c/kg.
Again at Wagga this week, the percentage of yearling steers purchased for slaughter was around 8pc of over 1000 steers offered. Feedlots and restockers paid mostly from 290-345c/kg, which in line with MLA’s Eastern States Feeder Steer Report released on Tuesday.
On a week to week basis, demand was stronger for the limited supply of grown steers and bullocks. Leongatha market offers the largest number week in week out, and the best bullocks sold to 332c/kg with numerous heavy weights over 320c/kg lwt. There have been some well finished, but fairly ugly, heavy manufacturing bullocks come onto the market, as producers try to capture a good price before winter hits for real.
Sales were noted from 245-285c/kg for crossbred bullocks weighing up to and over 850kg. This amounted to some very good dollar returns.
While Friesian bullocks were in short supply, prices only lifted marginally, as processors have a very good choice of cows on offer. Most of the heavy Friesian bullocks sold from 210-252c/kg lwt.
Yearling heifers met with solid demand, and many sold from 270-305c/kg lwt. The lack of grain assisted heifers led to a average price reduction, but from the numerous choices I saw at Pakenham, Monday, value for money created an increase.
This needs to be considered when assessing cow sales. There have been an extraordinary number of dairy cows sold, and with many still in milk, dressing percentages will be falling. Therefore with many dairy cows selling between 145 and 215c/kg lwt, the end result for processors is dearer.
The best of the beef cows sold from 220-257c/kg, although there are not too many at the higher end of this price bracket, mostly due to the failing season.
Further rain this week may only improve this situation.
