Cattle price slump worsens with the season11/12/2009 - Meat &...

Cattle price slump worsens with the season

11/12/2009 - Meat & Livestock Australi

The fall in cattle prices has gathered momentum, as another hot dry week in key NSW and Queensland regions added to feed and water problems. Also, processors showed little interest leading up to the end-of-year plant closures – which could be longer this year, as the A$ remains high and overseas demand weak.

The biggest price falls this week were in trade and medium steers in Queensland, with yardings in that state running 41% above a year ago. Similarly, NSW yardings were up a further 16%, to be 54% higher year-on-year, causing price falls across all categories, at both saleyard and in over-the-hook quotes.

The surge of lighter unfinished stock to market and lack of restocker demand, caused by the drought, pushed the EYCI down a further 13¢ this week, to 278¢/kg cwt, 16% below a year ago.

In stark contrast, higher Victorian and NSW lamb yardings and drought did not deter a further lift in finished lamb prices this week, centred on Victoria. The restocker, Merino and light classes fell back only slightly, despite the larger yardings of store-grade lambs, spreading drought and fall in restocker demand. However, feeder demand remains strong, given the low grain prices. Lamb processors continue to strongly pursue extra lambs before the Christmas closure, with over-the-hook rates playing catch-up on the saleyard price rises of recent weeks.