More rainfall in the South and a drop in throughput overall wasn’t enough to rally cattle prices this week. The market is still experiencing symptoms from the last month. Prices probably need to be lower for some buyers, and the feeders have been busy and needed a break. Optimism remains, last year cattle left dry pastures for relief in the North, the market might begin a shift back the other way.
Across the yards this week nationally, Yearling heifers (384¢/kg lwt) and steers (471¢/kg lwt) back to the paddock improved 4-5¢ respectively. The rest of the indicators saw single digit declines, arresting some of the downward momentum of the last few weeks. Supply dropped week on week but had been coming from unseasonable highs.
Theres been plenty of feeders available at the yards the last few weeks and if there’s plenty to choose from then prices must ease from the steep premiums we saw only just a month ago. This week the National Feeder Steer Indicator dropped 21¢ to 484¢/kg lwt, (Figure 1.)
Feeder numbers have hit the gas in the last month. Throughput of steers qualifying for the Feeder Steer Indicator were 20-23% higher than 5-year average levels over the last few weeks (Figure 2). No doubt this rapid uptick in numbers has contributed to the downward pressure in prices we’ve seen for feeders over the last few weeks. We can also put some blame on poor pasture growth, higher grain prices and lack of rain this winter in Queensland.
Like clockwork the winter market has an eye on feed, lack of northern rainfall and plenty of mouths to feed is a combination which will have some producers thinking about potential contingencies. On Mecardo this week Angus Brown provided a feed grain update (read more here). Feed grain prices are rising again in northern markets, creating a spread with the south but fodder remains stable with adequate supply.
Next week
Rainfall put a stop to the market decline; it will be interesting to see if this was the bottom of the decline anyway? Trade discussions are occurring globally, the general consensus has been that beef prices are expected to keep creeping lower until January, but anything can happen when demand and supply remain unbalanced globally.
The cattle market maintained its upwards momentum over the past week as the arrival of spring buoyed prices further. All major categories have now been
The Australian beef industry had a June quarter for the history books according to the latest Australian Bureau of Statistics data released last week. Records
Last week’s rainfall buoyed southern cattle demand, pushing prices higher across the board as yardings continued to drop lower in the north. Queensland supply still
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Feeder fountain coming from the North
Next week
Rainfall put a stop to the market decline; it will be interesting to see if this was the bottom of the decline anyway? Trade discussions are occurring globally, the general consensus has been that beef prices are expected to keep creeping lower until January, but anything can happen when demand and supply remain unbalanced globally.
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Data sources: MLA, Mecardo
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Independent analysis and outlook for wool, livestock and grain markets delivered to you as it’s published
Listen to the podcast
Join the Mecardo team for the Commodity Conversations podcast, where we provide short weekly market recaps and longer conversations with guests to discuss the drivers and trends in livestock, grain and fibre markets.
MEET THE TEAM
Our team of market analysts are recognised as leaders in Australian Ag market analysis, providing invaluable insights to help you navigate the ever-changing commodity landscape.
SERVICES AND CAPABILITIES STATEMENT BROCHURE
We don’t just bring you the most up to date market insights. Find out more about Mecardo’s services including risk management advisory, modelling, benchmarking, research & consultancy.