Cattle supply struggles on season’s final run

Rainfall last month boosted the Eastern Young Cattle Indicator to its highest level since the start of April – opening this week at 535.50 cent a kilogram.

This was likely driven by northern processing demand for finished types, as the gap between store and prime cattle remains evident.

According to Meat and Livestock Australia, strong export demand and a falling Australian dollar boosted heavy cattle prices.

The National Livestock Reporting Service quoted Pakenham as dearer for well finished cattle on Monday, as all categories of grown steers lifted from 4-7c/kg.

The Eastern States heavy steer indicator opened the week at 299.60c/kg, a fraction away from 300c/kg, which is a level it has only reached once since June 2017.

Quality impacted the large yarding of more than 6000 at Wagga Wagga in the NSW Riverina on Monday, which held the market back despite strong competition from northern export processors and northern store orders.

The extra export demand was evident at Toowoomba in Queensland on Monday, where heavy grown steers, 500-600kg, C muscle and fat score 4, averaged 308c/kg, compared to 275c/kg for the same category in Wagga Wagga.

South Australia remains an outlier as light store cattle from the drought impacted pastoral area continue to flow onto the market, and heavy grown steers of a similar category as above only averaging 242c/kg. 

Medium weight yearling steers also sold at a premium in the north, averaging 301c/kg compared to 283.1c/kg. And while heavy cows were also dearer in Queensland at both Roma and Toowoomba, restockers at Wagga Wagga and Dubbo, NSW, paid more for lightweight poor conditions cows.

Meanwhile the over-the-hook indicators were firm to 1-2c/kg lower in NSW and Victoria, with heavy grown steers on 510c/kg and 501c/kg respectively.

Over The Hook prices for cows were particularly discounted in the south, with the heavy cow price topping 476c/kg in Queensland, dropping to 428c/kg in NSW and falling further to 398c/kg in Victoria.    

Landmark Wangaratta’s Daniel Fischer said Queensland demand, and improved quality, has lifted the market across all categories in the past two weeks.

“Four weeks ago we were not yarding any fat cattle, now they are in better condition and yields are up, and that has pushed market,” he said.

But this supply will be short-lived in northern Victoria, Mr Fischer said, with prime cattle usually sold in November and December having been brought forward and sold already, or booked in for early this month.

“Supply going to be biggest factor going forward, we are three weeks away from the season being completely done and dusted.”