Large volumes of cattle across the county continue to flow both online and into saleyards, and are testing markets.
Across September and October AuctionsPlus has averaged 12,000 offered each week.
There have been an average of 55,000 head of cattle offered at saleyards across the country each week.
Online heavier end feeder weight steers since the start of October have lost 20c, while light steer calves under 200kg are 23c dearer.
Sheep and lamb slaughter remained robust across the month of September. National Livestock Reporting Service figures show 824,000 sheep where slaughtered, along with 1.6m lambs.
A 1:2 sheep to lamb slaughter ratio is worth noting, the last time the ratio was this level was: November/December-2019; September/August-2018; and February/March-2014 (all drought periods).
An increase this time of year is not unusual with cull ewes being classed out of flocks, however it is of interest with NSW leading the was of the ewe clear out while having a overall good season.
Live export of cattle is on track to break 700,000 head mark for the 2024 calendar year, with 564,000 head already exported.
Indonesia (largest export destination) already seen 369,000 head exported January to September 2024.
This is greater than cattle exported to Indonesia across the entire years of 2023 (360,000) and 2022 (333,000).
US Beef Retail value according to USDA, fell from 851.5c/lb in August to 840.8c/lb in September.
This average price has not been below 800c since April 2023, and 851.5c is the highest it's ever been on record since records started in January 1970.
US beef is more expensive than ever and their herd in February-2024 was the lowest its every been in 70 years.
The MLA EYCI has held its ground this week to close off on October 24 at 628c, 1% higher than last week.
Reports suggest an unchanged market has seen better cattle finding solid buying support but secondary cattle not.
It feels that the cattle market is looking for direction. NSW and Queensland backgrounders have the opportunity to buy based on good seasons, but there appears to be a high level of cautiousness.
The MLA Mutton indicator has risen 10% to close off on October 24 at 298c.
For the past three weeks AuctionsPlus has averaged 73,000 head offered weekly, and nationally saleyards have been averaging a yarding of 271,000 head of sheep and lambs.
So there is no shortage of head on offer, but whether mutton has found a floor remains to be seen.
MLA, AuctionsPlus, USDA.
Tom Rookyard is the General Manager at Ottley Livestock Finance.