January 21, 2013

Australia's January sales of weaner calf have seen prices dramatically down over last year as millions of dollars have already been wiped from livestock returns this month.

Southeast Australia's famed weaner sales have failed to deliver the much needed price hike to flagging cattle returns, while opening store sheep sales are earning half what they were a year ago.

Young Merino ewes sold to US$120 - more than half the US$242 last year. The Eastern Young Cattle Indicator opened at US$3.13/kilogramme, down US$1.06/kilogramme a year ago. Weaner cattle prices in northern Victoria and the Western District are US$100-220 down on last year.

Landmark Hamilton's Greg Lewis said the Angus steer weaner average at last week's sale was US$595, down US$160 on last year. And there was a similar drop in the Hamilton Hereford steer average, which fell US$168 to US$560.

Meat and Livestock Australia's chief economist Tim McRae said dry, hot conditions were sapping confidence from producers. "Certainly with the weaner sales for the past few years, many places had wet summers and producers were looking for animals to eat grass. Flat prime prices for the last six months have gradually eroded confidence," he said.

Prime markets are also losing ground, as producers offer big numbers. Wagga Wagga's market of about 3600 cattle was cheaper on Monday (Jan 14), with feeder steer rates slipping as much as US$0.24/kilogramme.