Comments from some processors this week lead toward that they would like to increase their slaughter levels, but judging by changing demand, one would consider otherwise.
The main reason for this is the close proximity to the long Christmas and New Year break of 2-3 weeks. Most processors, export processors, will not be working over this time, and therefore do not want to lift their slaughter rate, then close it down three weeks later.
Restocker competition has been driving sales of young cattle this week, pushing the EYCI higher to 645c/kg.
At Wagga Wagga, Monday, of the 1220 yearling steers sold, only 49 were purchased by the trade. Wodonga, Tuesday, was very similar with most of the steers returning to the paddock with some to feedlots. The grass is so good in the north east, and Riverina districts that producers are really pushing the barrow.
All markets this week, tendered more cattle, which comprised more of trade cattle, than cows and bullocks. Some cow sales were larger, but with a reduction of over 200 at Shepparton, Tuesday, the total balanced out.
Analysing MLA’s market reports, and those that they do not cover, did show a very mixed trend. Some sales were up to 20c/kg cheaper for vealers and yearling steers, but when looking across the whole gamut of the markets, price trends did even out.
The lack of the higher vealer prices, which were close to 390c/kg lwt last week, in some sales, firm prices in some markets, and cheaper trends in others saw the best quality claves sell to 375c/kg with may between 345-370c/kg. Restockers pushed prices for plainer and secondary steer calves, and yearling steers above slaughter prices of 300-345c, by up to 50c/kg lwt. This trend is similar to store cattle sales.
Yearling heifers did take a fall with many selling from 295-335c/kg, but few were over 320c/kg lwt. Some of this is due to fat cover with this magnificent season putting not only meat, but fat, in equal amounts.
This happens to a lesser degree in steers. Grain finished steers sold to 345c/kg for most sales, and once over 500kg lwt prices eased. Prices ranged mostly from 310-330c/kg.
With export processors not lifting slaughter levels, prices did ease this week, despite a drop in supply. Some of the bullocks are piling on the weight, which is aiding some reduced competition. At Pakenham, Monday, a consignment of Hereford bullocks weighed 888kg & 957kgs for three head.
Most of the seesawing effect on prices was again seen in cow markets. Pakenham was quoted firm with better quality cows from 245-275c, while other markets sold mostly to 258c/kg.
Prices of lean cows varied too with some sales dearer, others firm to cheaper. Because of the very good season, even lean cows are producing more meat. Heavier dairy cows sold from 195-228c with lighter weights mostly 165-205c/kg.
All in all, the market indicators should come out unchanged to dearer this week. Next week will most likely see another rise in supply, but time will tell.
