PROCESSORS continue to grumble over their inability to gain a profit from purchases, but saleyard prices indicate what they have to pay, due to weak supply.
Let’s split the markets into their two different formats of local and export. First, the local trade, which is showing the highest increases, and as we know, restocker and feedlot demand is driving some of this.
Vealers offering carcass weights of 160-180 kilograms have competition from wholesalers supplying the wholesale markets in Sydney, in direct competition with restockers and feedlots. This is seeing many vealers, particularly european breeds being purchased for grain feeding.
Prices for these are mostly around 360-370c/kg liveweight. The best quality, heavier vealers are selling from 365-397c/kg with pre-weigh markets of Warragul and Wangaratta topping some post weigh sales.
Aided by the strong competition from restockers and feedlots, the EYCI figure has climbed to 656.25c, Monday, which is 28.50c/kg carcass weight higher week-on-week.
However, looking at the breakdown across the eastern seaboard shows the strength of demand for cattle to turn out. MLA’s EYCI figures from Monday show Pakenham contributing 622c to the average, but markets further north are making the average what it is currently. Toowoomba was 667c, Wagga Wagga 673c, and Tamworth closed at 693c/kg, Monday.
Yearling steers and heifers are included in the calculations of the EYCI. MLA market reports indicated that C muscle steers sold to 375c to processors, and heifers to 368c/kg.
While these are the top of the price ranges, many steers and heifers are selling from 320-350c/kg lwt.
One processor commented this week, that four butchers a week are losing their doors across Australia, which is quite startling. I guess that supermarkets are covering any closures, although red meat consumption is well down overall.
Despite processors calling a loss, and also a fall in killing hours, prices for export cattle has risen again this week. Some of this is a particular market catching up to others, depending on the day of the week, but prime bullocks lifted up to 10c/kg lwt. Manufacturing bullocks have shown a larger rise than prime bullocks with Friesians selling to 285c and crossbreds to 308c/kg lwt.
Of all cow markets this week, Camperdown suffered the only declines, topping at only 248c/kg. Most better quality cows sold from 245-280c with dairy cows generally between 185 and 243c/kg lwt.
Bull prices lifted substantially with the best quality selling to 305c/kg, Monday.
