Weekly Cattle Comments - 28.01.22

With a total of 18,191 head across the main AuctionsPlus commercial cattle sales this week, prices remained robust, albeit with some of the categories lacking the “rampant buyer enthusiasm” from the previous smaller weeks, which was reflected in lower clearance rates. This week’s offering was the highest since early November 2021, with an increasing number of vendors reportedly keen to get cattle to market, especially through the lighter steer lines, to cash-in on the excellent prices and set themselves up for the end of summer.

With January’s holiday disrupted markets now in the rearview mirror and the normal weekly rhythm set to return in February, the true level of the national cattle market will be established in the coming weeks. Recent movement of the benchmark Eastern Young Cattle Indicator, almost hitting 1,200c/kg earlier this week, only to fall 6% in the following two days, highlights how the holiday period can contribute to the volatility of the young cattle market.

Table 1: AuctionsPlus National Weekly Cattle Prices
Table 2: AuctionsPlus Queensland Weekly Cattle Prices
Table 3: AuctionsPlus Angus Weekly Cattle Prices

Corresponding with the return to normal market schedules in February, was another very promising three-month rainfall outlook from the Bureau of Meteorology. Given that the market has largely priced in a continuation of the excellent conditions across Eastern Australia heading towards Autumn, further “expected” falls in the coming months shouldn’t move the market too greatly. As with most markets, it will be the unexpected, or underwhelming, that will create any potentially big shifts in the coming months.

The main feature of this week’s commercial sales was a lower clearance rate across the young cattle lines, while PTIC heifers continue to be the largest market segment. Even though the lightest steer categories had a larger influence of dairy cattle this week, the heaver lines were mixed. 330-400kg steers averaged $32 higher on last week, averaging $2,245/head, with a subdued 59% clearance rate for the 2,447 head offered. Feeder steers slipped back slightly on last week, down 3c, to average 538c/kg liveweight, or $2,326/head.

Clearance rates were also lower through the young heifer lines, as buyers’ recent willingness to purchase at any cost took a step back. Through the 1,620 head of 280-330kg heifers offered, the clearance rate slipped to only 68%, while the average price edged up $29, to average $2,016/head. Heavy heifers declined $23 on last week, to $2,309/head.

Through the proven breeding lines, PTIC heifers were again the largest market segment, with the 2,822 head selling to a 78% clearance rate. After some volatility through January, the average PTIC heifer price finished at January at $3,087/head. From Rolleston, Queensland, a listing of 56 PTIC Brahman heifers aged 20-30 months, weighing 443.9kg liveweight, sold $700 above their reserve, to return $2,560/head. From the south, a line of 62 22-23-month-old Angus PTIC heifers weighing 397kg liveweight from Coleraine, Victoria, returned $2,760/head. Joined to Malahide Angus bulls the heifers will head into South Australia.

NOTE: Prices as at 2pm, Friday 28th January 2022