I could not guess how many times I have been asked when will it end? Will they get cheaper is one of the main questions asked too.
I have already said that, yes it will get cheaper, it always does, as soon as supply increases toward the end of September.
This may already be happening if one considers the MLA’s market reports over the past seven days. Grown steer and bullock prices have fallen up to 10 cents per kilogram liveweight with the top price prime bullocks making 325-365c/kg.
With prices easing back in the saleyard processors will have the opportunity to reduce prices for direct sales.
However, some of this is quality driven with dressing percentages easing back, but equally, there are few bullocks on offer, and this in itself depletes competition.
If a buyer can’t get a start to fill a truck they stay out of the sale altogether.
Grown steers have fared a little better, partly due to heavy grain assisted steers coming onto the market. PRices seen at the top end were 360-370c/kg with steers weighing below 500kgs up to 390c/kg lwt.
Again here, the supply of grass fattened steers is minimal with processors relying on grain assisted cattle.
Some processors are more inclined to buy heifers for more consistency in fat cover and dressing percentages, and this has seen numerous heifers sell at unchanged rates.
It is hard at times with Coles supermarket entering a market, then not buying the next week, as their competition aids solid prices for steers and heifers from 460-540kgs lwt.
Many of the prime heifers sold from 355-380c/kg over the past seven days.
Gauging supply in the usual fat cattle sales has been made more difficult with the official opening of the the saleyards at Yass, last Thursday. MLA’s market reporter, Leann Dax thought this affected the Wagga yarding, Monday, where supply fell by 1000 head.
Despite all of the possible scenarios, most other markets were smaller, which shows the cattle are either not ready, or not around.
Local trade cattle continue to sell very well, despite a slight fall in the top prices. The best quality vealers sold to 400c/kg this week with most from 365-390c, but a sale of 405c/kg was recorded at Warragul and Wangaratta last week. Restockers continue to drive sales of secondary vealers, and yearling steers and heifers, as supply declines and grass grows.
It is said that producers can withstand drought and floods, but cannot handle having too much grass. Hence steer and heifers prices to return to the paddock were mostly between 360 & 425c/kg at Wagga and Wodonga, but mostly from 325-375c/kg lwt elsewhere.
Cow sales shown mixed trends with some quoted cheaper for very lean cows, but similarly these cows were dearer at other sales.
Good quality beef cows did reach as high as 315c/kg, although most sales were 265-295c/kg lwt. Many of the better results was for lean cows with many of the very poor cows selling from 170-225c/kg. Better quality Friesian cows sold to a top of 278c at Warragul, Thursday.