November 19, 2007

 

Australian cattle herds up 41 percent on-week

 

 

The National Livestock Reporting Service (NLRS) of Meat and Livestock Australia (MLA) reported national cattle numbers has increased by 41 percent from the previous week ending November 9. Prices were generally stable, with South Australia (SA) registering the strongest rises. The national trade steer indictor was cheaper by 1 cent, to finish Thursday (November 15) at 160 cents per kilogramme liveweight (/kg lwt). On the other hand, the benchmark Eastern Young Cattle Indicator (EYCI) dropped 1 cent, to settle at 294.5 cents/kg hundredweight (cwt).

 

Lotfeeders have started to show more interest in the market and increased their buying on both yearling steers and heifers.

 

Lotfeeders bought 37 percent of the larger yearling steer offering and 21 percent of the yearling heifer portion. This compares with 29 percent and 16 percent, respectively, last week. This, however, remains well below the same week last year, when lotfeeders dominated yearling purchases and secured 53 percent of the steer and 36 percent of the heifer consignment.

 

Lotfeeder interest on vealers has remained low since mid-year, with rapid increases in operational costs resulting in lower numbers going onto feed, particularly long-fed lines. Accordingly, a much higher proportion of vealers continue to be purchased by processors.

 

Although direct from paddock consignments have been a little harder to source, there has been increased availability of suitable stock in the saleyards. Historically, feeder purchases pick up in the lead up to Christmas and into the New Year, when many abattoirs are closed for maintenance and not actively seeking cattle.

 

Prices paid by lotfeeders were similar to last week, with the national feeder steer indicator firm at 155 cents/kg lwt. The national trade steer indictor was cheaper by 1¢, to finish Thursday at 160 cents/kg lwt.

 

Meanwhile, the national US cow indicator improved 3 cents from last week, to finish Thursday at 122 cents/kg lwt. The slight reduction in the A$ and increased demand, particularly from northern processors, assisted prices. Over the hooks quotes were also solid, with New South Wales and Victoria dearer and all other states firm.

 

Recent pasture growth has allowed producers to put condition on cows and the improved quality has been rewarded by processors. Dalby in particular offered predominantly 3 and 4 scores, which sold to stronger demand and gains of 2 cents to 6 cents were made across all categories, with a top price of 147 cents/kg lwt received.

 

In New South Wales, the majority of centres recorded improved cow prices, with Gunnedah a standout. At Wodonga in Victoria there were a large number of well conditioned heavy weight 4 score cows that sold to dearer rates. Shepparton went against this trend, with increased numbers causing cow prices to slip.

 

A similar situation arose at the South Australia Livestock Exchange, as last week's strong cow market forced more numbers onto the market, but had the effect of reducing demand and consequently prices. Similarly, in south-east SA prices were generally cheaper for all cow grades.

 

WA cow prices were dearer due to lower numbers at Midland and improved trade demand at Boyanup. At the Great Southern sale, heavy weight cows remained in line with last week's rates, but sold to weaker restocker competition.