As market reports come in this week there is a big disparity between the north and the south of Victoria in market supply, and prices.
For this time of year all southern markets, except maybe Leongatha, are well down in supply, but north of Melbourne, particularly Wagga Wagga and Dubbo, NSW, supply has jumped to another level.
Wodonga and Shepparton have shown a small increase in supply too.
The level of condition, or lack of it, is impacting these northern markets, but the more interesting point is the price differences for finished cattle, especially grown steers and bullocks.
Quality is one issue, but how do saleyard prices stack up against that of direct to abattoir prices?
Concentrating on the largest fat cattle sale, that of Leongatha, we are seeing a return to the ‘we must have them’ attitude that we saw some two or more years ago, when saleyard prices exceeded that of direct selling.
On Wednesday last week, prime bullocks sold to 326 cents a kilogram for cattle weighing 750 kilograms, and 125 C-muscle bullocks, 600-750kg, averaged 309c/kg lwt.
Their carcase weight price average was 550c/kg where they stood, which puts them in excess of over the hooks (OTH) prices which are currently 505c/kg, in Meat & Livestock Australia’s weekly report.
Some export processors have special price grids for ‘Grassfed, or Grass Assured’ programs, but these specific prices are on a grid system. There is no such price adjustment in the saleyard.
To this end, it is worth mentioning Pakenam, Monday, where extra heavy bullocks weighing over 899kg, sold for 290c/kg.
Price grids in Queensland for bullocks, 300-420kg cwt, are 465c/kg, a long way short of the southern state.
No wonder they are not down in these southern markets trying to fill orders.
Cows continue to roll into all markets in fair to large percentages.
Prices were increasing with some of the best cows making 200-235c/kg lwt, but direct pricing has remained quite steady.
OTH prices can be around 430c/kg for good beef cows, but MLA’s report puts 365 and 395c/g.
At Wagga Wagga, carcase weight prices were 385-405c/kg for good cows and 355-367c/g for lean cows.
Some cows are better being sold in the market, especially if they attract restocker bidding, and others are better OTH.
For trade cattle, they have to be very good to equal, or surpass direct prices with offers for direct sales mostly 540-560c/kg cwt.
Top of this market was 336c/kg for vealers and 307c/kg for yearling steers.