Mixed results was seen in all of the prime cattle markets during the past seven days, especially those at the start of this week. Trade cattle prices were generally unchanged with some a little dearer, but the wholesale and export sector were less keen, and prices were cheaper.
Some of this weaker interaction was due to plainer quality, but demand for cows showed a definite weakened trend. Most affected in this were the larger numbers of lean 1 score dairy cows, and even more affected were the poor yielding lighter weight cows.
It is not surprising when you consider it cost as much to slaughter one of these compared to better quality, and these poor quality cows yield a lot less saleable meat. Boning costs remain stable too.
Most of this very lean cow beef, as you know ends up in the United States as 90CL grinding beef. whether there is some concern about the immediate future of this trade with the US, is yet to be determined. As I have mentioned previously, will this trade with the US be affected by any future trade agreement.
The highest price for beef cows was 267 cents per kilogram liveweight, which was achieved at Pakenham, Tuesday, but this was not the norm, as most better quality cows sold from 235-258c/kg. It is fair to say that some of the peripheral markets were even cheaper than this.
The extremely, continually hot weather in the north east of Victoria and NSW has affected the quality of livestock, and this heat aided an increase in the supply of cows, and yearling steers and heifers. With store sale prices remaining very high by comparison to physical sales, competition remained very strong from restockers and feedlots.
Suitable steers sold from 345-395c for most with lightweight steers to 447c/kg lwt. Heifers made mostly from 295-365c/kg.
Prices for the very best quality vealers were unchanged to dearer with a price range between 335-370c/kg lwt. Some of the lighter weight vealers, best suiting the Sydney wholesale market sold very well. Yearling steer prices peaked at 335c/kg, which included some supplementary fed steers, while their heavier brothers were mostly from 300-328c/kg lwt. Prices here were up to 10c cheaper, as were most of the bullock prices. Prime bullocks sold from 290-315c/kg lwt.
The changing weather patterns influenced more manufacturing cattle into markets, and although these were also cheaper, pound for pound than the better steers.
All classes of heavy, older cattle showed these cheaper trends, including grown heifers and bulls. Bulls sold mostly from 230-285c/kg lwt. Does this indicate uncertainty for the future, I still do not believe so. More cattle were penned this week, and quality was plainer. It may only take a couple of quieter weeks to show a true trend.
It was interesting to note that Queensland processors have lifted prices for some direct sales by 20c/kg cwt, an early indication of weaker supply, or more just in the short term, due to the monsoonal weather patterns covering much of northern Australia.
