Cattle prices firm despite highest throughput for the year

Victorian cattle producers have increased their cattle turn off ahead of the fragmented April selling period, due to Easter and ANZAC Day public holidays, which will reduce cattle sales and abattoir processing.

Thomas Elder Markets analyst Matt Dalgleish said there were 8854 cattle sold at the state's cattle markets last week, a rise of 5.4 per cent on the week prior and marking 14pc above the five-year average.

"We have seen the highest saleyard volumes for the year and in the face of those volumes cattle prices increased in Victoria which says demand is good," Mr Dalgleish said.

"Higher prices in the face of higher supply infer demand is solid; whether that is demand from restockers, feedlots, or processors, there is enough buying demand out there to see prices rise despite the volumes."

The Eastern Young Cattle Indicator hit 1091c/kg carcase weight last week, while heavy steers averaged 468c/kg liveweight in Victoria, marking a rise of 12c/kg on the week prior.

Medium steers were up 36c/kg week-on-week across the state to 499c/kg lwt, feeder steers rose 14c/kg to 530c/kg lwt, and vealer steers were up 10c/kg to 604c/kg lwt.

"The week prior we saw prices eased slightly so that may have motivated producers to turn off cattle with the shutdown of saleyards and reduced abattoir volumes," he said.

"The rain we have seen in NSW and southern Queensland hasn't made it to Victoria either, and the western district is dry and encouraging producers to lighten their holding load ahead of winter.

"Once we get through Easter and we are back to normal with weekly operations at processors and saleyards, it will be interesting to see what is presented and how prices behave."

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Nutrien Ag Solutions south-east livestock lead Adam Mountjoy said the public holidays and three short weeks of selling this month led to the increased saleyard throughput.

"There are a few factors - the market has been holding relatively strong and feed is starting to get tighter with days cooler, so producers are happy to take the money on offer in early April," Mr Mountjoy said.

"I'd like to think demand in May will increase with a clearer passage to works and slaughter days and continue to improve into the months of winter."

He said these returns had been insulated by the high residual value of slaughter cows.

"I think there is a portion of our clientele that would be happy to reduce numbers at the moment given the high demand for breeding females we have seen in recent weeks," he said.

"Some producers will see it as the last opportunity to offload surplus numbers because hand feeding will be at the forefront of their minds going into winter - the seasonal conditions in late autumn have let us down in some key breeding areas."

Meanwhile online cattle numbers have also spiked 7pc higher in AuctionsPlus trading last week, where 17,848 head were offered.

Weaner steers sold from 361-953c/kg, with light calves 200-280kg steers averaged 761c/kg - up 16c/kg on last week, while weaner heifers sold from 373-970c/kg, and averaged 716c/kg - up 41c/kg.