SUPPLY dwindled as the market stabilizes after three weeks of public holidays. However, many people thought that numbers would fall further than they have, which can be credited to the prices.
In the vealer sections of markets, supply of good quality is very limited, and processors are turning more, and more to grain assisted steers and heifers.
Although the best vealers have sold up to 397c/kg, the best being at Warragul, last Wednesday, most are making 350-387c/kg lwt. This is becoming very hard for local butchers and wholesalers to recoup their money, but quality does help.
Prices at the middle to lower end of this range is being driven by competition from feedlot operators. One only needs to follow Wagga Wagga, Shepparton and Wodonga markets to see how many secondary vealers, and secondary yearling steers and heifers are purchased for on feeding.
Having said this, Wagga Wagga had around 90 per cent of their young cattle returning to the paddock, or feedlot, and while other markets are not far away from this, demand has remained, but prices have dropped. Cooler temperatures and falling condition is mostly to blame.
I was interesting to note MLA’s Eastern Feeder Cattle report, which indicated sales direct to feedlots have dropped in price by around 8-12c/kg lwt. As the warmer months draw closer, feedlots always minimize their exposure to high price cattle.
Most of the steers purchased by restockers made from 340-395c with some younger calves still making up to 450c/kg lwt. Heifers of a similar nature sold mostly between 320&375c/kg lwt.
Gippsland is flying the colours of export quality cattle with some exceptional numbers being sold over the past couple of weeks. More important is the quality of the cattle with large numbers of bullocks coming forward. At Leongatha, last Wednesday, over 800 bullocks were sold, and Pakenham, Monday had over 400 bullocks.
Because of their good quality, prices remained stable, to 2-3c/kg dearer. Most prime bullocks sold from 310-333c/kg lwt. Manufacturing bullocks were of mixed quality and sold from 290-322c/kg lwt.
It is interesting to note that one of South Gippsland’s leading export buyers has been flying to Roma for the past few weeks, as the price differentials make trucking cattle south, very attractive. I am sure he does not have this territory to himself with many trucks heading south.
As the expression goes “beauty is in the eye of the beholder” with cow prices being all over the place. Some cows sold to dearer trends, others were cheaper, and price trends differed from market to market. Most cow markets were quoted as being cheaper. However, the best quality cows sold from 235-265c, and most plain cows 155-215c/kg lwt.
Hot off the press, Tuesday night, came the Wodonga market report, where prices are down, down, prices are down. More vealers were in plainer condition, and restockers and feedlots pulled prices back up to 22c/kg lwt. Bullocks were cheaper, but grown steers, 500-600kgs, held their own.
