AuctionsPlus commercial cattle offerings for the fourth quarter of 2022 (1st October - 31st December) totaled 196,328 head - a 16% rise from the previous quarter and 2% higher than the corresponding quarter in 2021. Steer numbers accounted for 37% of the cattle offered across the quarter, while heifers and breeding stock accounted for 30% and 31%, respectively, while mixed sex lines made up the remaining 2% of listings.
December was a strong month for online cattle listings, with the close of the year seeing a total of 71,549 head offered – a 20% rise from December 2021. Improved pasture growth and warmer weather in the final quarter of 2022, paired with a backlog of cattle due to a wet and cold winter facilitated the accelerated flow of cattle listings online. In the final week of sales in December the EYCI was sitting 22% lower than 2021 at 901c/kg cwt, rising from a low of 855c/kg the previous week. Despite an overall softer market, clearance rates remained firm to reach 73% across the quarter, slipping 2% from the previous quarter.
Figure 1: AuctionsPlus quarterly cattle clearance rates and throughput volume from 2017- Q4 2022.
The top ten regions for the quarter outlined in Table 1 revealed that Southern Queensland remained the top throughput region for the third consecutive quarter, with 31,351 head listed – a 14% rise on the corresponding quarter in 2021.
The NSW Northwest Slopes and Plains and Central Western NSW regions took out second and third spot for listing regions, with 17,430 head and 16,722 head, respectively. The Central Western NSW offering was consistent with the same quarter in 2021, while the Northwest Slopes and Plains listings slipped 12%.
Clearance rates across the top three regions were steady, with Southern Queensland registering a 73% clearance, back 5% from the previous quarter. The Northwest Slopes and Plains and NSW Central West also saw a decline in clearance, slipping to 70% and 68%, respectively. Across the top ten listing regions, Lower Southeast SA recorded the largest quarterly rise in listings, up 135% from the previous quarter. The NSW Riverina recorded the largest year-on-year rise, increasing by 23% from the corresponding quarter in 2021.
Southern Queensland, Northern Queensland and NSW Northern Tablelands all registered quarterly and year-on-year rises in throughput for the quarter.
Table 1: Top AuctionsPlus throughput regions for Q4 2022 and clearance rates.
As seasonal conditions remained broadly supportive, rising input costs and interest rates fostered buyer hesitancy, which combined with increased supplies, resulted in a softening of the overall market sentiment and prices for the quarter. While clearance rates remained relatively stable, they were unsurprisingly back from the restocker demand driven highs in the fourth quarters of 2020 and 2021, which reached 82% and 90%, respectively.
Purchasing trends for the quarter followed a similar trajectory to throughput in terms of the largest trading regions. Table 2 outlines the top ten purchasing regions for the quarter, with Southern Queensland remaining the cattle purchasing powerhouse, securing 34,988 head - despite the total purchasing volume slipping 14% lower than the corresponding quarter in 2021.
Central Western NSW and NSW Northwest Slopes and Plains took out second and third top purchasing regions with 19,051 head and 15,815 head listed – up 29% and 15% from the corresponding period in 2021, respectively. Eight of the top ten purchasing regions registered a rise in purchases from the previous quarter, while five registered year-on-year rises. AuctionsPlus regions which reported the largest year-on-year purchasing increases included Western Queensland (up 119%), Eastern/Central SA (up 84%) and Lower Southeast SA (up 63%).
Table 2: Top 10 purchasing regions for Q4 2022.
Looking to state based listings as a proportion of the total AuctionsPlus quarterly offering (figure 2), Queensland cattle listings slipped from 37% in Q3, to 30% in Q4. NSW numbers remained steady, accounting for 48% of total listings, while Victoria accounted for 13% of the offering and SA listings made up 6% of the total quarterly throughput.
Figure 2: Breakdown of Q4 2022 AuctionsPlus cattle listings by state.
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