Weaner heifers 'steering' towards new trading opportunities

A substantial and growing price disparity between weaner steers and heifers has recently emerged on the AuctionsPlus platform in 2024. Heading into Q4, the difference reached its highest point in October, with the steer-to-heifer price gap widening to as much as 66c/kg liveweight, with steers taking the premium. 

Currently, weaner heifers are averaging 318.5c/kg, while weaner steers sit at 384.4c/kg according to October results recorded on AuctionsPlus.  

Traditionally, cattle producers have favoured steers due to their higher market value, but with the recent surge in the price gap, it may be time for producers to consider the potential profits in trading heifers. 

Figure 1. Data collected October 25, 2024. Source: AuctionsPlus 

Figure 2. Data collected October 25, 2024. Source: AuctionsPlus 

The price differential between steers and heifers is a key indicator of market dynamics. Over the past eight years (January 2016 to October 2024), the average gap has been around 6.65%, but market forces, including supply and demand fluctuations, have seen it rise and fall beyond this average. 

Australia’s cattle market is now in a destocking phase, with the latest Australian Bureau of Statistics (ABS) figures showing the female slaughter rate (FSR) has climbed to 53.1%, the highest since 2019, according to Meat & Livestock Australia’s (MLA) Senior Market Information Analyst, Erin Lukey.  

Several factors are driving the current price divergence. However, the national herd in a destocking phase and rise in FSR could be a focal contributor to the widening price gap between weaner steers and heifers. 

Steers generally trade at a premium because feedlots are willing to pay more for feeder steers, which tend to reach slaughter weight faster than heifers.  

However, AuctionsPlus General Manager – Network, Paul Holm, believes there may be an opportunity to capitalise on the discounted price for heifers. 

“If I’m taking an animal from 300 to 400 kilos, the price difference for a feeder heifer at the other end isn’t that much different to a steer.  

“So, do you take the 66c purchase price difference and factor that in to potentially make more profit from a heifer than a steer? If you get your selling point right, there’s not much difference,” Mr Holm said. 

For those looking to purchase weaner weight cattle, the lower price for heifers could present an opportunity to profit.  

“If you can see four or five months of feed ahead, the heifers might be worth considering,” Mr Holm added.  

"Just because others are factoring in that risk doesn't mean your local conditions require it. If you've got feed in front of you, that 66c difference might be worth the risk."