BOOM, boom, boom, fat cattle prices explode as rain affects supply across many markets, over many states.
Last week was good, Monday was better, but Tuesday really showed a big increase week-on-week.
As early as Wednesday last week, prices were on the rise with all markets indicating that restockers would drive the market. By Tuesday, prices rose to 410 cents per kilogram liveweight for younger calves, and market quotes indicated price rises of 20-30c/kg, or more.
However, the effect on processors was equally as high, and they will be reeling by the end of the week.
At Wodonga, Tuesday, top quality vealers sold to 409c, yearling steers to 375c,and heifers peaked at an astounding 381c/kg lwt.
These prices could not be achieved at other sales, but comparisons were similar across the board between each individual markets previous week.
Prices increases are not isolated to trade cattle, as prime bullocks sold to 340c/kg on Tuesday. While some of the price increases were driven by restocking activity, a number of markets offered smaller yardings. In many cases supply fell between 20-40 per cent on the back of heavy rain. With more rain expected toward the end of the week, supply could continue to ease.
Away from the very top prices, dwindling quality aided some of the restocker demand. Most steers purchased by restockers were purchased between 350 and 390c/kg.
Feedlot operators could not, and would not match these prices, despite a lift in offered prices into northern feedlots.
MLA’s Eastern States Steer Feeder report indicated a rise of 2-5c/kg for both domestic and export steers, but saleyard indicators were much higher.
As we head toward autumn, and winter, vealer numbers continue to slow. Most vealers sold from 350-385c with the plainer types all purchased for further feeding.
It is interesting to watch the rise in demand for heifers as the season continues to change. Prices for yearling heifers have increased more than steers, due to their better fat cover at this time of year. Most heifers recorded have sold from 300-345c/kg, and again here, feedlot buyers have entered the market.
The EYCI closed at 640.75c, Tuesday, which was 21.25c higher week-on-week, but 13c/kg better than Monday’s figure.
All bullocks and grown steers took a rise this week, and much of this was stronger demand for secondary types as processors try to keep their overall prices down. Manufacturing bullocks sold from 270-315c, and secondary, or lesser shape prime bullocks 290-310c/kg. Grown steers, 500-600kgs lwt peaked at 340c/kg, similar to their heavier brothers.
Last but not least are cows. In my opinion, there is a little wriggle room in cow prices with the US 90CL price lifting again, and cows prices lifted for all classes. At the top end, cows sold to 269c with the bottom end mostly around 165c/kg lwt.
Stock & Land’s market indicator for cows was 458c/kg cwt, up 13c compared to last week.