Just when you think competition in the red-hot cattle market cannot get any fiercer, a little more fuel is added and both prices and clearance rates take another step up. After some subdued weeks for clearance rates, PTIC heifer demand roared back this week, with a 93% clearance boosting the average for the week by $450, to reach $3,182/head for the 1,719 head offered.
Along with the resurgent PTIC market, the outstanding result for the week was the almost perfect clearance rate for all lots based out of Queensland (see Table 2). Of the 3,875 head offered out of Queensland this week, all but 16 head sold – a overall weekly clearance rate of 99.6%, with the unsold cattle coming from the 330-400kg heifer category. The recent rain, combined with this week’s La Nina outlook has clearly bolstered confidence in the northern market, adding to the already very tight supply of cattle on offer.
Table 1: AuctionsPlus National Weekly Cattle Prices
Table 2: AuctionsPlus Queensland Weekly Cattle Prices
Table 3: AuctionsPlus Angus Weekly Cattle Prices
Measuring the demand levels within the current cattle market can be extremely difficult, given there seems to be very little upper level on prices at the moment. Below are the bid statistics from today’s two commercial cattle sales, which highlights just how intense the competition was for the 14,170 head offered across the two sales. To contextualise the fierce competition across the cattle market, todays Weaner & Yearling sale had 74% more bids compared to last week and an amazing 325% more than the same week last year.
Throughout the young cattle lines, clearance rates ranged from 96-100% for the three lightest categories, with the 1,674 head of 200-280kg steers averaging $41 higher on last week, at $1,806/head. As heavy steer clearance rates rebounded, hitting 96% for the relatively small 622 head offered, 330-400kg steer prices went against the trend, slipping $51 on last week to average $2,110/head. Accompanying the cheaper price for 330-400kg lines was a lower clearance rate, falling to 80% for the exactly 1,000 head offered.
It was the heavier heifer lines that increased in price this week, as the two lightest lines declined despite clearance rates of 99% and 100%, respectively. Given the reduced supplies, 280-330kg heifers averaged $203 higher on last week, to $2,134/head, while the heavier 330-400kg lines jumped $260, to average $2,376/head. The clearly stronger market for heavy heifers, including PTIC lines, can be viewed as a leading indication that recent rain and forecasts has boosted the demand for future breeding lines. Given the seasonal confidence many producers would now have for 2022, the longer time option of purchasing unjoined lines appears to be back in vogue – and some $800 cheaper than the current PTIC heifer option.
Through the proven breeding lines it was a stronger market, with PTIC cows up $92 on last week, to average $2,971/head – with a 95% clearance rate for the 866 head offered. Station mated cows with CAF averaged $361 higher this week, averaging $3,958/head, with a top price of $4,770/head.
Weekly Cattle Summary – w/e Friday 26th November, 2021