CHRISTMAS markets will finish from December 14-22 depending on which market you follow.
This leaves only three to four weeks of sales left, and the last week will be very quiet. With Christmas falling on Sunday this year, there will be two to three weeks between sales.
Given this scenario, the low supply for this time of year indicates to me that we may have reached the bottom of price trends.
All markets are offering a lot less than the same time in 2015, although last year it was ot and dusty with no grass, and this year is the exact opposite.
Admittedly, many farmers have commenced harvest, which usually depletes supply, but this is generally three to four weeks earlier than 2016. The lack of supply is certainly affecting the competition that processors would prefer, although they probably appreciate where prices will head next year.
Very noticeable is the slow start to the selling vealers, especially in the southern parts of Victoria. Only Wodonga and Wagga Wagga, in NSW, are showing any lift in supply, especially the high quality calves.
This has led to increased demand from processors with price rises quoted from 5-15 cents per kilogram liveweight higher this week. Prices have been from 360-393c/kg for the best quality calves.
If the Pakenham sale, Monday, is any indication of quality and supply, processors are in need of good cattle. Very few vealers were penned, and most of the best calves were heavy, being 385-475kg lwt. Some of the heaviest calves sold for the highest prices as butchers and local wholesalers competed for supply.
Equal to this was the lack of trade weight steers and heifers, and while Wagga Wagga and Wodonga had a good supply, feedlots and restockers purchased the lion’s share. Prices did vary here with feedlots paying mostly 300-345c, and restockers anywhere up to 416c/kg lwt.
Grain assisted yearlings sold to 365c with most others 300-345c/kg. Grown steers sold mostly from 300-330c with the smaller supply of bullocks from 290-320c/kg. Most of these prices were unchanged to the previous week.
While it is fair to say that demand for cows was unchanged, some prices were higher. The best recorded was at Pakenham, Tuesday, reaching 275c/kg. There was only 157 cows offered at this market, and most other sales were generally light on numbers.
This kept prices at unchanged levels with most beef cows selling from 235-265c/kg. However, there usually an exception to this rule, and at Shepparton, Tuesday, prices were quoted up to 10c/kg cheaper. This market was the exception the rule for supply too with over 570 cows penned, and many of these were better quality beef cows.
The highest price here was only 258c/kg, and averaging around 238c for better cows, as compared to the small sale at Pakenham, which averaged 256c/kg for good cows.
Leaner cows sold at firm rates with many selling from 175-228c/kg lwt. The dollar dropping to 73.5c will suit processors.
