December 3, 2007

 

Australian young cattle market active

 

 

Figures from the Meat and Livestock Australia (MLA) show that vealers and yearling cattle have enjoyed increased competition from the restocker and feeder segments with vealer prices up by 4 cents to 164 cents while trade yearlings gained 4 cents to 162 cents per kilogramme liveweight (/kg lwt).

 

Feeder steer categories continued to make the best progress by gaining 5 cents, to 161 cents/kg lwt. The Eastern Young Cattle Indicator (EYCI) gained 10.25 cents to 299.25 cents/kg cwt (hundredweight).

 

National throughput at MLA's National Livestock Reporting Service reported saleyards for November has been 20 percent lower than the same period last year and 15 percent below the five year average.

 

Eastern states throughput during November mirrored the national trend, with yardings falling below the previous year, and the five year average by 25 percent and 14 percent, respectively. With the exception of NSW (New South Wales) remaining on par with the five year November average, all other eastern states experienced a considerable reduction. In comparison to the five year average, Queensland had the largest percentage reduction in throughput, recording 25 percent less numbers. Compared with last November, Victoria displayed a huge reduction of 46 percent, reflecting recent improvements in seasonal conditions, which failed to materialise during the same period last year.

 

The markets of Dalby in Queensland, Wagga in southern NSW and Wodonga in northern Victoria posted their respective state's largest volumes of cattle for November. Dalby yarded 5,810 head last week, its largest single sale since mid May.

 

During the course of the month, supply at almost all centres in NSW and Queensland peeked within the third and fourth week of November. Southern markets in Victoria and SA, however, displayed mixed trends in supply from week to week. Producers are selling well conditioned livestock, and are taking advantage of the recent improvement in competition. Numbers are expected to remain high in the lead up to the Christmas break and as spring comes to an end.

 

Young cattle enjoyed increased competition from restocker and feeder buyers and prices increased in a predominantly dearer market. Nationally, at MLA's NLRS reported saleyards young cattle made up 44 percent of total yardings. Vealer numbers increased significantly compared with last week, climbing 17 percent.

 

Despite the increased vealer numbers, demand for young cattle has been largely influenced by increased activity from both restocker and feeder buyers. Restockers purchased 27 percent of the vealer steers and heifers offered, which is higher than the 19 percent recorded last week. Restockers also made significantly more purchases of yearling steers, despite numbers reducing 4 percent. Feeders, however, dominated activity on yearling steers, purchasing 46 percent of the offering.

 

The increased activity assisted national indicators. On the back of restocker interest, vealer steers gained 4 cents, to 164 cents/kg lwt. Trade steers also improved 4 cents, to 162 cents/kg lwt, while the feeder steer indicator increased 5 cents, to 161 cents/kg lwt. Current prices see indicators for young cattle reside 2 percent to 13 percent above last year's prices.

 

EYCI highlighted the dearer trend, to be 10.25 cents above last week at 299.25 cents/kg cwt at the completion of Thursday's reported markets.

 

Grown steer numbers have realised little change at physical markets, resulting in competition remaining reasonably firm. Medium steers received the best of the enquiry, which was reflected in national indicators gaining 3 cents, to 157 cents/kg lwt. The Japan ox values, on the other hand, were slightly lower at 162 cents/kg lwt, down 1 cent/kg lwt.

 

Cows followed a similar trend, with numbers decreasing 14 percent and competition from processors easing, as they finalise slaughter commitments before holiday closures. This resulted in the national indicator prices falling 1 cent, to finish Thursday at 119 cents/kg lwt, with Queensland recording the highest average price, at 125 cents/kg lwt.