July 23, 2007

 

Mixed production and sales on Australian cattle

 

 

The National Livestock Reporting Service (NLRS) under Meat and Livestock Australia (MLA) reported sales increase by 6 percent last week on New South Wales (NSW) and South Australia (SA) despite lower numbers. Demand has reduced across the grown steer and cow categories, but has been solid for young cattle. The benchmark Eastern Young Cattle Indicator (EYCI) finished 2.75 cents higher than last week, at 344 cents per kilogramme hundredweight (kg cwt).

 

For the year to date, national young cattle numbers at MLA's NLRS said sales have increased by 2 percent led by yearling heifers compared to the same period last year. 

 

Despite the overall increase, vealer steers and heifers are 16 percent and 9 percent lower, respectively. Across the yearling categories, feeder activity has been prominent, with activity on the steers and heifers increasing 13 percent and 20 percent, respectively.

 

For the period of winter, the trend has so far changed slightly as supply has been down for young cattle on the same period last year. Vealer steers and heifers are slightly lower, yet the main reductions in numbers have been in yearlings, which are 12 percent lower for steers and 5 percent less for heifers.

 

The main increase in enquiry across all of the categories of young cattle has come from feeder buyers. This has particularly been the case for vealer steers and yearling heifers, which have had a larger proportion purchased by lotfeeders and fewer returning to the paddock compared with winter last year. Additionally, processors have tended to favour the heifer portion of the yearlings purchased this winter.

 

National young cattle prices were also mixed last week with prices well below received at the same time last year. The national vealer steer indicator is down 4 cents on last week, at 196 cents per kilogramme liveweight (/kg lwt). Yearling steers remain steady with the national indicator up 2 cents at 195 cents while the national feeder steer indicator sat at 184 cents which was also up 2 cents /kg on last week. All young cattle categories reside between 7 cents and 17 cents/kg lwt below the same time last year.

 

Sales of grown steer numbers sales have increased 7 percent on last week and 22 percent on the same period last year, according to NLRS. Queensland and NSW showed the largest increase in numbers due to the light and medium weight feeder category, which has almost doubled on last weeks' offering.

 

The increase in supply has had a negative affect on prices, which has resulted in grassfed grown steers suitable for slaughter dropping in price by 3 cents, to average 166 cents/kg lwt. Grown feeder steers have followed a similar trend, dropping 2 cents to average 164 cents/kg lwt.

 

At the completion of Thursday's (July 19) sales, national indicators for medium grown steers fell 3 cents to finish at 169 cents/kg lwt. The Japan ox indicator averaged 186 cents, a drop of 3 cents/kg lwt.

 

The national cow yarding was 57 percent higher than the same time last year, and numbers were up 1 percent on last week. NSW experienced the largest drop (down 37 percent), while all other states increased in number, with Queensland's cow production up by 18 percent. 

 

Meanwhile, the national US cow indicator fell 12 cents, from the high prices of last week, to settle at 269 cents/kg cwt after sales on July 19 due to strong Australian dollar as well as the closing of abattoirs due to winter maintenance.

 

Victoria and Queensland experienced the biggest drop in prices, down 19 cents and 10 cents/kg, respectively. This was influenced by the increase in numbers penned in both states compared with the last few weeks.

 

In Victoria, the US cow indicator averaged 288 cents, a drop of 41 cents on last week and 7 cents/kg cwt below the same time last year. The highest average recorded was 153 cents at Pakenham on Tuesday (July 17), where prices ranged from 140 cents to 165 cents/kg lwt.