November 26, 2007

 

More active feeder cattle activity in Australia

 

 

Although yearling steer throughput increased last week, feeders were more active, purchasing 42 percent of the total, according to Meat and Livestock Australia (MLA). The national feeder steer indicator remained firm at 155 cents per kilogramme liveweight (/kg lwt) on an otherwise cheaper market.

 

Medium steer and Japan ox prices eased 3 cents and 1 cent, to 154 cents and 163 cents, respectively, while cows averaged 120 cents/kg lwt on increased supply.

 

Cattle supply has risen above throughput experienced prior to the recent rain. Nationally, throughput at MLA's National Livestock Reporting Service (NLRS) reported saleyards increased 4 percent on last week, to levels comparable to last year.

 

Producers in northern New South Wales (NSW) and Queensland have taken advantage of price improvements, offloading more cattle as temperatures increase and this starts to impact pastures.

 

Queensland numbers increased 26 percent last week, with the markets of Dalby, Longreach and Silverdale recording substantially larger yardings. Northern NSW markets followed the trend as the state total increased 9 percent. Victoria and South Australia on the other hand, recorded reduced supplies of 9 percent and 17 percent, respectively, than the previous week. Victoria's yardings were 36 percent lower than the same time last year.

 

Yearling steers increased 7 percent on the already larger numbers of last week. This result is more than likely influenced by the improved prices last week, under increased competition from feeders and restockers. Feeders purchased 42 percent of yearling steers offered, which was up from the 37 percent bought last week.

 

Grown cattle throughput also increased, as numbers of grown steers rose 8 percent and cows by 7 percent. Quality seems to be reasonably good, as a high proportion of cows are within the medium weight D3 categories.

 

Despite the increased supply, particularly in the yearling steer categories, competition has been strong.

 

Feeder and restocker activity has been strong and more than often, processors have been left with limited purchases. This has meant that the stronger demand from feeder buyers has diminished the price gap between slaughter and feeder steer categories.

 

Restockers are remaining active on yearling steers. This has helped keep lightweight steers firm, while variations in quality has contributed to reducing medium weight yearling prices.

 

At the completion of MLA's NLRS reported markets on November 22, national indicators for trade yearling steers decreased by 1 cent, to 158 cents/kg. Feeder steers on the other hand, increased 1 cent, to 156 cents/kg, with the strongest demand registered in NSW.

 

The benchmark Eastern Young Cattle Indicator (EYCI) lost some grown on the gains made in recent weeks, to be down 5.50 cents on last week, to 289 cents/kg cwt.

 

Grown steer and cow numbers have increased at physical markets, resulting in competition easing slightly. Grown steers increased 8 percent on last week, with the majority of the gains in the medium weight range. Japan ox throughput, on the other hand, remained at similar levels. This was reflected in national indicators at the completion of Thursday¡¯s markets for medium steers, which eased 3 cents to 154 cents/kg lwt, while Japan ox values remained unchanged at 164 cents/kg lwt.

 

Cows followed a very similar trend, with numbers increasing 7 percent and competition from processors easing. This resulted in national indicator prices falling 2 cents, to finish Thursday at 120 cents/kg lwt, with Queensland recording the highest price at 124 cents/kg lwt.