Low throughput and progressively lower prices, are plaguing cattle producers.
Last month store cattle throughput sat at 278,529 – the highest it had been in more than four years.
The last time throughput hit such highs was in November 2019, when 297,431 store cattle sold during that month.
However, it hasn’t lasted, so far in March store cattle throughput has plummeted, sitting significantly lower with only 172,251 head recorded as sold, with just a week to go.
Meat and Livestock Australia’s Senior Market Information Analyst Erin Lukey said weekly yardings figures were the lowest they had been since the last week of January and November 2023, but that they were still above the long-term average.
Last week 79,000 store cattle were sold through saleyards across Australia, and as of 5pm Thursday, there had been just 53,000 head, with negligible numbers expected to be added on Friday.
“There has been quite a big dip in yardings , which indicates those prices are a dip in confidence rather than deflated supply,” Ms Lukey said.
“They have been going through this cycle - four weeks up and then drop – this is the drop.”
She indicated this was likely due to producers shying away from drops in the market and choosing to hold onto cattle.
“It’s hard to tell, it’s been so volatile since 2022, it’s very hard to predict what producers are going to do,” she said.
The fall in yardings has coincided with significant price declines, including the EYCI dropping 55.34c/kg or about 9% in the past month.
Ms Lukey confirmed cattle prices had been falling for a couple of weeks in a row.
However, she did report that there had been some daily lifts to the feeder steer and heavy steer index mainly driven by Queensland buyers.
“We could be seeing people pulling out because those prices are dropping,” she said.
“The yardings are likely influenced more by prices rather than the supply of cattle.”
She said we could see a return in yardings as prices level out.
As for what is driving the changes, Ms Lukey repeatedly said the cattle market was currently volatile.
“Queensland is looking a bit more positive in the eight-day rain forecast, which may prove a lift to feeder and heavy through there,” she said.
Looking ahead, lower throughput is expected going into Easter and ANZAC Day public holidays, with processor shutdowns necessitating less livestock.
“There is always a yarding dop at that time of year,” Ms Lukey said.
