15 January 2008

3 minute read

Oceania

MLA said that young cattle have benefited the most from the recent rains, with feeders and restockers active. Nationally, trade steers averaged 177¢ and feeder 171¢, an increase of 16¢ and 12¢/kg, respectively, on the same period last year.

Tight grown cattle supplies

National grown cattle offerings accounted for just 37 per cent of overall cattle reported by MLA’s NLRS this week. Reduced numbers is typical for the first couple of weeks of a New Year, as many export processing plants are either still closed or just commencing operations.

While grown steers accounted for 21 per cent of total grown cattle offered this week, it was still just eight per cent of total cattle yarded.

Medium and heavy steers dominated the reduced numbers, with many offered as leaner 3 scores. With the tighter supplies, prices for almost all grown steer categories sold to a dearer trend. Medium weight C3s improved 20¢ on the final week of December, while heavy steers eased slightly to 161.7¢/kg lwt.

MLA figures show that cows made up 53 per cent of grown cattle offerings and 19 per cent of total national yardings, with medium and heavy weights cows predominant. Restocker purchases were limited this week, accounting for only five per cent of total purchases. Dairy lines were generally firm to slightly dearer, with most of the heavy weights selling from 107¢ to 121¢/kg. Beef breed medium weight D3s were firm at 123¢, while the heavy D4s gained 2¢ to 124¢/kg lwt. Good quality C muscled heavy cows were met with the strongest demand, with prices going into the mid 140¢/kg range.

Bull demand from live exporters has started the year on a positive note at Midland in WA. Most of the attention was focused on lots weighing between 300 and 400kg lwt, with the majority selling from 130¢ to 157¢/kg lwt.

Strong start to EYCI in 2008

For 2007 the Eastern States Young Cattle Indicator (EYCI) averaged 317.6¢/kg cwt, which was four per cent down on 2006 and almost seven per cent below the preceding five year average. The EYCI commenced 2008 at 322.5¢ – four per cent higher than at the end of last year and 14 per cent above the same time last year.

Much needed widespread rains and generally mild temperatures across most of the eastern states from November through to the New Year has provided producers with renewed enthusiasm for 2008. This increased enthusiasm has been a contributing factor behind lower yardings at MLA’s NLRS reported markets so far in 2008. Cattle yardings for the first full week of 2008 were back 42 per cent on the final full week of December and 25 per cent on the same period last year.

Both restockers and feeders have already shown increased interest in the market, particularly on the better bred cattle. However, the plainer D muscled lots are yet to attract the same attention. Restockers purchased 15 per cent of the young cattle offered across the eastern states this week, while feeders secured 28 per cent. However, both restocker and feeder purchases remain slightly below the same period last year, with feeder demand continuing to be hamstrung by the high cost of feed and strong Australian dollar.

In an attempt to negate some of the increased costs lotfeeders have been facing, many have been reportedly looking to purchase stock at the heavy end of the yearlings and medium weight grown steer categories. The higher purchase price is being negated by the shorter time on feed the animal will require to reach desired specifications.

The national trade steer indicator finished the week at 176.6¢, with the national feeder steer indicator at 171¢/kg lwt. Both indicators were 9¢ and 4¢/kg higher, respectively, than at the end of sales last year.

TheCattleSite News Desk