National cattle yardings increased 10% on last week, and 17% above the same time last year. The national feeder steer indicator and US cow indicator experienced the largest gains on last week – both reaching their highest levels since August 2007. The feeder steer indicator jumped 5¢ to 179¢/kg lwt, while the US cow indicator lifted 4¢ to 133¢/kg lwt.
Cow prices realise further gains
National cow prices have increased again this week. The national D3 medium weight cow indicator gained 2¢ on last week to stand at 133¢/kg lwt. This is the highest price recorded since late August 2007.
All states realised gains across the majority of cow categories, with the exception of SA. Competition for cows picked up during the week, with the majority of the export buyers, wholesalers and restockers competing strongly for the mixed quality offering.
In Queensland, lightweights lifted around 4¢ as the D1 and D2s to processors averaged 97¢ and 104¢/kg lwt, respectively. Restockers also increased their prices across the plainer light and medium weight lines. The medium weight D3s to slaughter realised a 1¢ increase to stand at 125¢/kg lwt. In the heavyweight category, the D4s to processors increased 6¢ to average 147¢/kg lwt.
Across NSW, processors purchased the majority of the medium and heavy weight cows at dearer prices. The medium weight D3s gained 3¢ on last week, to average 134¢/kg lwt. The medium weight D2s lifted 1¢ to 122¢/kg lwt, while the D4s gained 3¢ to 141¢/kg lwt. Across the heavyweights, prices lifted 1¢ on the D3 and D4s at 141¢ and 145¢/kg lwt, respectively. Restockers lifted rates on the lightweights by 2¢ to 12¢/kg lwt, while remaining firm to cheaper across the medium weights.
Victorian cow prices also realised a dearer trend to both slaughter and restockers. Restockers lifted prices for lightweights while purchasing medium weights either side of unchanged. The D3 medium weights remained firm at 145¢/kg lwt. Medium weight D2s to slaughter, however, increased 2¢ to average 138¢, while the D3 and D4 heavyweights gained 1¢ to stand at 149¢ and 153¢/kg lwt, respectively.
Cow numbers in WA were considerably lower due to the fall in prices recently. The small number of D3 medium weight pastoral cows realised an increase of 13¢ to 105¢/kg lwt, as prices ranged from 97¢ to 111¢/kg lwt.
With the absence of a SA processor, due to an annual maintenance closure, demand for cows still remained quite strong from Victoria. Overall, prices for cows, however, were cheaper. The D3 medium weights declined 4¢ to average 140¢/kg lwt, while the D3 heavyweights dropped 1¢ to 141¢/kg lwt.
June cattle and calf slaughter down
Eastern states cattle and calf slaughter for the 2007-08 financial year was 2% and 1% below 2006-07. Across the eastern states, June cattle and calf slaughter eased 28% and 21%, respectively, compared with May. June 2008 slaughter also decreased 20% for cattle and 26% for calves year-on-year. NLRS reported total cattle slaughter at 723,487 head and total calf slaughter at 71,831 head for the month of June.
Overall, there was a decrease in the total number of head offered at MLA’s NLRS reported saleyards – total cattle throughput for June decreased 12% compared with May, while total calf throughput fell 6% over the same period.
Many processors have reduced the amount of working days to assist in offsetting tight margins. The Queen’s birthday long weekend and annual maintenance closures also had an effect on production as well as saleyard throughput.