The national young cattle market eased further this week, as online prices took the largest coordinated step back in several months, as uncertainty and buyer resistance took hold. While overall AuctionsPlus offerings for the week slipped 2%, to 18,779 head, 70% of the main reporting categories finished lower at the immediate closure of the auctions, with clearance rates subdued for almost all segments of the market.
Much like consumer sentiment in recent months, buyers seem to have been slowly losing confidence as each week passes, with the run of negative headlines and growing concerns all weighing on the market. Given that seasonal conditions, and the outlook, have largely remained unchanged, the recent falls can only be attributed to a more tentative buyer. A buyer that has become increasingly aware of expenses and rising costs since May.
However, context is always important for livestock markets. While the EYCI has dropped over 100c in the past month, it is still clinging to four-figures and the season remains favorable through most of the eastern states.
“Red ink” took over through the young cattle categories this week, with most steer and heifer lines back by over $100/head. 200-280kg steers registered the largest offering for the week, with the 2,434 head offered selling to a 61% clearance rate – averaging $191 lower on last week, at $1,554/head. Making up almost two-thirds of the category, average Queensland prices (see Table 2) for the 200-280kg segment dropped $296 on last week, to average $1,481/head. From Charleville, Queensland, a line of 133 Droughtmaster weaned steers aged 6-10-months-old and weighing 267kg lwt returned $1,670/head. Also out of Queensland, a line of 104 Angus weaned heifers from Roma, aged 6-11-months-old and weighing 254.5kg lwt returned $1,755/head, or 689.6c/kg lwt.
Table 1: AuctionsPlus National Weekly Cattle Prices
Table 2: AuctionsPlus Queensland Weekly Cattle Prices
Table 3: AuctionsPlus Angus Weekly Cattle Prices
280-330kg steers dropped $141 lower for the week to average $1,899/head, with a 51% clearance rate for the 1,842 head offered. From Tarcutta, NSW, 25 Angus steers aged 9-10-months-old and weighing 286kg lwt returned $1,790/head to a buyer in Boorolite, Victoria. Going against the lower trend, 330-400kg steers averaged $153 higher on last week, at $2,166/head, with a 50% clearance rate for the 1,612 head offered. From Narromine, NSW, a line of 32 Angus feeder steers aged 11-12-months-old and weighing 373kg lwt returned $2,300/head, or 616c/kg lwt.
For young heifers, only 200-280kg lines averaged higher for the week, up $102, to average $1,648/head. With 1,860 head offered, the clearance rate for the 200-280kg lines reached 48%, which was back from the 52% last week. Through the heavier lines the red-ink returned, with 280-330kg lines averaging $197 lower, at $1,840/head. A comparatively tight supply of 330-400kg heifers failed to halt the declining market, with most of last week’s $311 gain wiped-off, down $226 for the week, to average $2,049/head. From Ellaswood, Victoria, a line of 40 yearling Shorthorn heifers aged 12-14-months-old and weighing 351kg lwt returned $1,900/head, heading to a buyer from Geurie, NSW.
For the breeding lines, PTIC took a considerable step backwards this week, as overall demand declined. With the 2,743 head only reaching a 39% clearance rate, average prices slipped $480 lower, averaging a seasonal low of $2,233/head. From Winchelsea South, Victoria, a line of 43 Angus PTIC heifers aged 20-21-months-old and weighing 457kg lwt returned $2,775/head to a buyer in Cootamundra, NSW. The heifers were joined to Angus bulls and due to calve in mid-September.
PTIC cows averaged $68 higher for the week, at $2,704/head, as weight and bloodlines continued to underpin the market. From Winton, Western Queensland, a line of 40 Santa Gertrudis cows PTIC to Santa Gertrudis bulls aged 2-9-years-old and average 630kg lwt returned $3,000/head.
From Jugiong, NSW, a line of 17 Angus station mated cows with 17 Angus calves at foot returned a top price of $4,000/head. The cows were joined to Angus bulls, aged five-years-old and average 625kg lwt. The calves were aged 3-6-weeks-old and averaged 115kg lwt.
NOTE: Prices as at 2pm, Friday 1st July 2022