Cow price climb

Last week’s slaughter figures were down just 2% from the previous week but are still maintaining a premium over year-ago levels. Cattle yardings also dipped, ending this week nearly 8% lower, but again remained just above the rolling 12-month average. Of most interest when it comes to throughput was female cattle slaughter. According to Meat and Livestock Australia’s weekly report, it was down to 45% of the kill. Looking back at weekly data, it has only been that low for one other week since the start of winter—and likely well before that.

This likely contributed to the increase in competition for processor cows this week, with the national indicator reaching a record 393¢/kg during the week before finishing at 392¢/kg—an increase of 20¢/kg from last Friday. The Roma store sale in Queensland was the majority contributor to the cow price, and the National Livestock Reporting Service quoted sales of up to 420¢/kg for young three-score cows, despite it being a big yarding. Dubbo, NSW, was the price driver, however, averaging well above the national price at 407¢/kg, with the NLRS quoting prime heavyweight cows at 416¢/kg.

Processors are being prompted to up the ante on cows mainly because the US imported beef 90CL price indicator keeps on climbing. It closed last week (latest data available) at AU1120¢/kg, now solidly in record territory. In US dollars, it is now double where it started its climb at the beginning of 2024 and sits 17% stronger year-on-year. With the US Department of Agriculture last week revising its projected beef imports even higher on the back of tightening domestic supply, and Australia’s main competitor for that market, Brazil, now thwarted by massive tariffs, there is little to indicate price positivity will stall.

Onto other categories, and heavy steers had the biggest gain for the week, up 23¢/kg to 435¢/kg, with more than 55% of the eligible stock coming out of Queensland saleyards. The Eastern Young Cattle Indicator held fully firm at 897¢/kg, while the National Young Cattle Indicator climbed 7¢/kg to 476¢/kg (liveweight). As mentioned, nearly 8000 of the 19,000 cattle eligible for the NYCI were sold online in Queensland and NSW, averaging 463¢/kg and 519¢/kg, respectively. Feeder categories saw little change, but lotfeeding competition was noted at all the major yards.