September 9, 2013

 

Australia's beef price decline continues

 

 

After making significant gains in the middle of this year following a steep fall in the first half of 2013, Australia's beef prices are once again weakening due to a rush of plainer conditioned cattle into the saleyards.

 

There were also a couple of processors pulling out of the saleyard markets in northern New South Wales (NSW).

 

Ray White Garvin and Cousens director Andrew Warden, Tamworth, said the season was becoming desperate for many people in the north of the State and that was reflected in the number of cattle being sold. He said a big portion of these were "forced sales" as vendors just didn't have the feed to hang on to them.

 

About 80% of the regular buyers were still operating in the market, as estimated by Warden, but there were at least one or two major processors that were not buying.

 

"These processors already have plenty of stock due to the on-going influx of cattle from the north of the country being sold into southern Queensland and northern NSW," he said.

 

Warden said that from Queensland, cattle were being trucked into many northern NSW markets and even into Dubbo, and there was little sign of the flow slowing.

 

For several weeks the Eastern Young Cattle Indicator (EYCI) has slipped and as of Tuesday's (Sep 3) sales was on AUD3.1625 (US$2.90) a kilogramme (carcase weight). This is about AUD0.60 (US$0.55) per kilogramme lower than this time last year. It was only a few months ago the EYCI slipped below AUD3 (US$2.76) per kilogramme and there is concern the market could be heading for that low level again.

 

According to National Livestock Reporting Service (NLRS) figures, NSW cattle supply was 9% higher than the week before and was on track to increase again this week based on early sales.

 

A quick look at the markets confirmed the trend was right across the State, not just isolated to a few of the bigger centres. Casino's market last week yarded 1,263 head, which was a bounce of almost 30% on-week.

 

Dubbo had one of the largest prime cattle markets recorded in NSW for some time totalling 6,050 head, up 44%. In the north last week, Inverell was 57% bigger (at 970 head), while Tamworth hit 1,230 (up 14%) and rose to 1,842 on Monday (Sep 2). The Wagga Wagga market last week was up 25% to 2,560 cattle and bounced again this week to 3,285.

 

Likewise, at Gunnedah last week the yarding jumped 28% (to 2,630 head) and on Tuesday surged to 3,420 head. The NLRS reported quality had also been plain and included plenty of lightweight lines. Further south there's a more positive vibe for both the market and the season.