Over-the-hook cattle indicators strengthen

Slaughter

Eastern states cattle slaughter bounced back this week – albeit as a result of the reduced processor throughput for the previous week ending 11 October due to public holiday - with 151,000 head slaughtered last week, according to the National Livestock Reporting Service (NLRS).

Adult slaughter was reported 12% above the same week in 2018, despite an expectation for supplies to have tightened at this stage. However, with no spring reprieve and sustained dry conditions, cattle have continued to be pulled forward in strong numbers.

State by state adult cattle slaughter for the calendar year-to-date (ending 18 October) is:

• NSW at 1,448,640 head, an increase of 5.8% year-on-year
• Victoria at 1,083,986 head, an increase of 9.3% year-on-year
• Queensland at 3,067,763 head, an increase of 6.6% year-on-year
• SA at 177,471 head, a decrease of 9.3% year-on-year
• TAS at 191,750 head, an increase of 1.4% year-on-year

Over-the-hook indicators

Despite elevated slaughter numbers so far in 2019, over-the-hook indicators continue to trend higher, supported by strong export demand for well finished cattle. Over-the-hook indicators for NSW, Victoria and Queensland, all strengthened this week with the majority of Queensland indicators reaching a 2019 high.  The Queensland heavy steer indicator was reported at it’s highest level since September 2016. The lift provides some indication that finished cattle supplies could start to tighten before the end of the year.

Comparing key state cattle indicators for the week ending 18 October 2019, compared to the same time last year, we see a consistent upward trend.

For NSW:

• The over-the-hook trade steer indicator averaged 520c – up 16c/kg cwt
• The over-the-hook heavy steer indicator averaged 524c – up 14c/kg cwt
• The over-the-hook medium cow indicator averaged 429c – up 35c/kg cwt

For Victoria:

• The over-the-hook trade steer indicator averaged 558c – up 40c/kg cwt
• The over-the-hook heavy steer indicator averaged 559c – up 56c/kg cwt
• The over-the-hook medium cow indicator averaged 441c – up 79c/kg cwt

For Queensland:

• The over-the-hook trade steer indicator averaged 562c – up 39c/kg cwt
• The over-the-hook heavy steer indicator averaged 568c – up 54c/kg cwt
• The over-the-hook medium cow indicator averaged 443c – up 23c/kg cwt
• The over-the-hook 100 day grainfed steer indicator averaged 601c – up 48c/kg cwt

© Meat & Livestock Australia Limited, 2019