22 October 2010

11 minute read

Oceania

SA weekly cattle summary

After last week’s lower priced sales there was a much lower yarding at the SALE in mixed quality runs that sold to erratic competition from the usual trade and processor buyers, who had their numbers boosted by an extra local processor. Prime yearling cattle were the beneficiaries of improved prices, while a small number of vealers were pursued by local butchers and wholesalers, with a feeder order also active. Yearling steers and heifers made up the bulk of the yarding and also included lines of pastoral bred cattle. There were only small numbers of grown steers, grown heifers and manufacturing steers, while only 58 cows were penned and sold at mainly lower levels.

Naracoorte’s predominately young cattle contained good quality runs that sold to solid competition from the usual SA and Victorian trade, one supermarket and processor buyers, with a NSW order also sourcing prime grown steers and heifers. Feeder and restocker orders were also active particularly after the first couple of runs attracted slightly lower rates, before lifting again in the last couple where some excellent quality cattle were offered. This only led to a fluctuating priced sale that was quite hard to follow at times.

Mt. Gambier’s numbers fell as mainly good quality runs that sold to solid demand from the usual SA, Victorian and NSW trade and processor competition.

Millicent’s yarding was similar to last week, featuring some excellent quality vealers again, even though some steers were starting to show signs of losing freshness and drying out.

It was an erratically priced sale week that was probably due to the smaller numbers being offered. Vealer steers to the trade sold from 180¢ to 215¢ for the C muscled, and 195¢ to 226¢ for the B muscled at rates generally 1¢ to 8¢/kg more. Feeder and restocker orders paid from 185¢ to 235¢/kg for C2 and C3 light and medium weight steers. Vealer heifers to the trade sold from 173¢ to 207¢ on a mixture of C and B muscled light and medium weights at prices mostly 1¢ to 10¢/kg dearer. Yearling steer C3 sales ranged mainly from 160¢ to 200¢ with supplementary feds at the higher end at rates unchanged to 4¢/kg dearer. The yearling heifer C3 sales were 2¢ to 7¢ dearer with the heavyweights faring best, with most sales 165¢ to 192¢/kg.

Grown steer prices were unchanged to 6¢ dearer with C3 and C4 sales 168¢ to 187¢, and mainly 300¢ to 330¢/kg cwt. Smaller numbers of cows tended to sell at dearer levels as most D3 to C6 medium and heavyweights sold from 125¢ to 154¢, and generally 250¢ to 290¢/kg cwt. This led to the majority of sales being unchanged to 7¢/kg more.

VIC weekly cattle summary

A large amount of rain across the state, helped reduce the number of cattle offered at MLA’s NLRS reported markets. Given that it is nearly the end of October, it would be expected that supply starts to ramp up. We are in the middle of an exceptional spring season, and there are a lot of good quality cattle being offered. Put this together with the reduced supply, and coming off the back of large price falls last week, and prices rebounded across most categories.

Some of the larger price gains were realised across a range of grown cattle, as these were the worst affected by cheaper trends in recent weeks. Grown steers, bullock and cow prices lifted 3¢ to 8¢/kg, which was around half of the falls last week.

The current season is the best for many years, and this has resulted in a number of cattle being offered carrying excess condition. At Bairnsdale a clear message was given by processors that they will not pay for fat anymore. The East Gippsland region has a lack of cattle after continual des-stocking over the past dry years. Now that there is grass in paddocks grown steers, bullocks, and in particular cows are laying down fat quickly. Prices discounts were severe with one agent choosing not sell some very heavy 5 score bullocks.

As a result of the season, restockers are playing a larger part in physical market prices buying as many suitable cattle as possible. This includes a large percentage of cows, both beef and dairy breeds.

The EYCI lifted 1.25¢ week on week, to be 365.75¢/kg cwt at the completion of Thursday’s markets. The top price of vealers was not able to reach the highs of recent weeks but still sold to 236¢, as average prices for B and C muscle vealers was firm to 3¢/kg dearer at 214¢ and 190¢/kg respectively. Because of the better quality, and also the strong restocker demand there were few vealers and yearlings selling below 170¢ with most C muscle, and D muscle young cattle making 170¢ to 210¢/kg. Feedlot buyers were active in all sales, although they were more selective, paying mostly from 175¢ to 205¢/kg.

The larger price gains were for grown steers and bullocks. They regained around 50% of the large falls suffered recently, to be around 6¢/kg dearer. Prime C muscle bullocks made between 166¢ and 179¢, although some extra heavy, over conditioned bullocks sold from 154¢ to 170¢/kg. Cow prices rebounded, which also assisted the carcase weight price average to lift 6¢ to an estimated 289¢/kg. Better quality 2, 3 and 4 score beef cows made between 142¢ and 160¢/kg. Most of the larger frame 1 and 2 score dairy cows made from 120¢ to 147¢/kg.

WA weekly cattle summary

The tight seasonal conditions in much of the state have continued. This is despite some rainfall mid-week in the southern corner of the state with the largest falls on coastal areas. Despite the rainfall, the time of year and current stage of pasture and crop growth it is not expected that much benefit will be realised from it. Much of the state’s hay crop has now been cut and baled and reports from many producers are that most have recorded yields at least 50% below normal years.

The tight feed conditions and lack of supplementary feed as well as water this year continues to cause strong turnoff of stock from properties across much of the agricultural districts. Many producers are turning stock off as much as six to eight week earlier than normal.

The Great Southern saleyard had record levels of cattle for the months of September and October with larger than normal supplies of both cows and vealers. No decision has yet been made about the commencement of the annual two-day format, but with the earlier than usual turnoff of cattle many are predicting that there will be a shorter selling season which could end just into the New Year. Agents in the southwest have also scheduled earlier than normal sales rosters.

The supplies of pastoral cattle remained moderate at Muchea, while the numbers of prime trade ad heavy weight steers and heifers were also only fair. Light and medium weight vealer supplies were again very healthy with good supplies of cows again penned.

All sales had very large numbers of light and medium weight vealers penned, while heavy weight drafts remained very hard to find with few drafts exceeding 300kg lwt. Demand continued to be strong from local feeders with solid influence again coming from the eastern states where many cattle continue to head. Despite the greater supplies the market for both vealer heifers and steers remained buoyant and higher than many would have predicted. The fair to average supplies of grass finished trade weight yearling steers and heifers were of a reasonable quality. Demand from the local processing sector continued at similar levels with both sexes selling at unchanged levels.

There was less demand for grown steers and heifers despite the limited numbers available. The very large supplies of cows remained of a reasonable quality and weight. The market however lacked processor demand and prices were again weaker on better quality and heavier drafts. Lightweight and store grades of cows realised a fair inquiry from restockers and eastern states buyers but again cheaper prices were recorded. Heavy weight bull rates also eased, while lightweight sales to live export and export feeder were firm.

NSW weekly cattle summary

Following rainfall at the end of last week and over the weekend all markets had lower yardings except Gunnedah and Singleton. Wagga was the hardest hit with heavy downpours in the supply area causing flooding and a reduction in supply of 59% at Monday’s sale. Overall the states throughput was down 18% compared to last week.

The wet conditions over much of the state will go further to ensuring an excellent season. With plenty of dams full of water, moisture in the ground and feed getting away the state has been officially declared drought free. On the other hand some dry, warm weather is wanted by grain growers particularly in the north so winter crops can be finished and paddocks can dry out enough to get the harvest underway.

Quality and condition varied widely with well finished yearlings off crop or supplementary fed offered at Inverell and Scone while at Gunnedah and Armidale there were plenty of plain lightweight yearlings. Grown steers and bullocks were well supplied with the most yarded at Dubbo. Competition was also varied with some markets cheaper despite numbers being down, the A$ affected grown cattle categories while restocker demand for lightweight yearling steers was boosted even further as they averaged 216¢/kg. An extra grown cattle buyer was present at Tamworth but only operated on limited pens while at Armidale not all the buyers were present given it was a very small offering.

Over the hooks prices experienced a cheaper trend with the A$ hurting exporters. An anticipated lift in supply of finished cattle also aided the cheaper trend.

Most grades of cattle sold to a cheaper trend with lightweight young cattle the only exception. Calves to processors averaged 238¢ as those to return to the paddock made 222¢/kg. Medium weight vealer steers to restock averaged 221¢ to be firm on last week. Lightweight vealer heifers to trade buyers gained 6¢ to 230¢ and medium weights were steady at 214¢/kg. Lightweight yearling steers to feeder buyers averaged firm at 201¢ as medium weight C2’s were 2¢ cheaper at 195¢ and the C3’s were firm around 198¢/kg. Heavyweight yearling steers to feed made around 189¢, processors paid to 208¢ and averaged 5¢ cheaper around 186¢/kg. Lightweight yearling heifers mostly sold around similar rates, restockers paid 188¢, feeders paid around 189¢ and processors prices averaged between 193¢ and 196¢/kg. Heavyweight yearling heifers were firm at 177¢/kg.

Heavyweight grown steers averaged 4¢ lower at 175¢ as bullocks averaged 1¢ to 4¢ lower between 174¢ and 175¢/kg. The cow market was subjected to the largest fall in prices largely due to the A$. Medium weight D2’s slipped 7¢ to 128¢, D3’s eased 6¢ to average 137¢/kg. The heavyweight D3 cows reached 157¢ but averaged 5¢ lower around 142¢ and D4’s were 4¢ lower at 145¢/kg.

QLD weekly cattle summary

A run of fine weather in some parts of the state combined with recent strong demand for all categories lifted overall numbers at physical markets covered by MLA’s NLRS close to 16%. However Longreach went against this trend with more rain in the supply area, and some more rain around Roma slowed numbers into both the store and prime markets.

The general lack of supply of stock in eastern states due to the extremely good season has heavily influenced the transfer of cattle from the drought affected parts of Western Australia. Last year 5,471 cattle crossed the Nullarbor, however so far this year that figure has soared to 62,963, with 18,000 in the last month according to border crossing data.

The overall quality of stock coming forward in Queensland markets is generally fair to good nevertheless a large percentage of the young cattle are being snapped up by feeder operators and restockers. Despite the general increase in supply at a number of centres feeder and restocker grades generally maintained the rates of previous weeks. However at markets in the south-east corner of the state slaughter grades lightweight yearling heifers suffered price reductions of 10¢ to 13¢/kg as demand from local and interstate processors eased back from the high levels of previous sales.

Export demand for slaughter grades of heavy steers and bullocks was erratic, nevertheless as one processor stepped out of the market another stepped in and overall across all centres values were able to remain firm. This trend also flowed onto the cows and a part from restocker and PTIC lines improving in value most slaughter grades generally met strong demand.

Slaughter grades of calves lost ground in value to average 203¢ with the occasional sale to 236.2¢/kg. Vealer steers in the C2 range averaged 178¢ while the better C3s averaged 198¢ and sold to 211.6¢/kg. Vealer heifers generally sold around 196¢, while some top end quality lines sold to the local butchers at 232.2¢/kg. A large selection of lightweight yearling steers returned to the paddock at 223¢ with the occasional pen reaching 268.2¢/kg. Lightweight feeder descriptions averaged 210¢ and medium weights 202¢ while the heavy grades mostly sold around 189¢/kg. Lightweight yearling heifers to restockers averaged 205¢ and slaughter descriptions 196¢/kg. Medium weights to the trade averaged 11¢ cheaper at 180¢ and heavy grades lost 5¢ to average 177¢/kg.

Heavy grown steers to export slaughter experience very little change at 180¢ and sold to 192.2¢/kg. A fair supply of good heavy bullocks averaged 181¢ and sold to 191.2¢/kg. Full mouth bullocks were in demand and averaged 10¢ dearer at 174¢ with some to 179.2¢/kg. Cows PTIC made to a top of 212.2¢ with most at 188¢/kg. Medium weight 3 scores to processors averaged 135¢ and good heavy cows made to 167.6¢ with most at 152¢/kg.

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