Weekly Cattle Comments - 13.05.22

The widespread rain of the past week failed to have a major impact on overall cattle supplies, with AuctionsPlus commercial cattle offerings hitting 18,656 head this week. While offerings remained healthy, the rain seemed to have a major impact on demand, but not in the traditional upwards manner. A lack of immediate buyer interest from Queensland and northern NSW players contributed to a consistent decline in young steer prices, as buyers looked to more immediate rain-induced issues.

Looking past this week’s immediate decline in young steer prices, the season defining falls of rain through central and southern Queensland this week are likely to have a significant long-term positive impact on the cattle market. While fingers remain crossed that short term damage and losses are minimized, once producers can get back out into paddocks to assess the impact, herd rebuilding efforts are anticipated to commence in earnest, putting further pressure on an already historically high breeding market. Follow up falls through NSW were also registered this week, especially through northern inland parts of the state, raising the prospects of a third consecutive wet winter.

Light young steers declined considerably this week, with 200-280kg steers dropping $73 on last week, to average $1,728/head. With 2,272 head offered, at an 84% clearance rate, there was a noted absence of some frequent northern bidders, which reduced competition. From Walcha, Northern Tablelands NSW, a line of 20 Shorthorn steers aged 7-8 months old and weighing 260kg lwt returned $1,920/head – purchased by a buyer at Narrabri, NSW. From Kilkivan, Southern Queensland, a line of 43 Charolais cross steers aged 6-8 months old and weighing 223kg lwt returned $1,810/head, or 813c/kg lwt.

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

For the heavier 280-330kg steers, prices averaged $17 lower, at $1,974/head, with an 82% clearance rate for the 1,976 head offered. 330-400kg steers experienced the sharpest fall in offerings this week, with the 493 head offered down from 1,849 head last week, with the clearance rate also falling from 82%, to 55% this week. The absence of northern bids contributed to prices falling $142 on last week, to $2,043/head. From Orange, Central West NSW, a line of 60 Angus steers aged 11-12 months old and weighing 366 kg lwt returned $2,480/head. From Miles, Southern Queensland, a line of 34 Santa Gertrudis cross steers aged 14-17 months of age and weighing 388kg lwt returned $2,300/head.

A significant lack of feeder demand hit the heaviest steer category hard this week, with 400kg+ steers dropping $330/head on last week, to average $2,249/head. The clearance rate for the reduced offering only reaching 46% - the lowest in several months.

For the five young heifer categories it was largely uneventful compared to the movements in the steer markets in terms of prices, with all the major categories slightly higher. However, clearance rates were noticeably subdued compared to last week, as vendors remained hesitant to shift reserve levels. 200-280kg heifers averaged $17 higher, at $1,663/head, while 330-400kg lines averaged $32 higher, at $2,167/head. From Chinchilla, Southern Queensland, a line of 60 Droughtmaster cross heifers aged 15-18 months old and weighing 350kg lwt returned $2,025/head. From Bingara, NSW, a line of 41 Speckle Park heifers aged 6-9 months and weighing 266 kg lwt returned $2,370/head, or 892c/kg lwt.

There was another excellent offering of PTIC cows and PTIC heifers this week, with offerings of 3,238 head and 3,242 head, respectively. At an unusually low 39% clearance rate, PTIC heifers averaged $84 higher on last week, at $2,979/head, while the cows slipped $3 on last week, to $3,083/head – with a much healthier 71% clearance rate. As has been the trend throughout 2022, PTIC heifer clearance rates are expected to rise in the coming days, as post-sale negotiations kick into gear. From Pentland, North Queensland, a line of 88 Brangus PTIC cows, aged 2-4 years and weighing 470kg lwt returned $2,920/head. Joined to Brangus bulls, the PTIC cows are destined for a long trip south to Nyngan, NSW.

From Mortlake, Southwest Victoria, a line of 25 Angus cows and calves aged 3-3.5 years and weighing 448kg lwt returned $3,940/head. The cows and 26 Angus calves at foot aged 2-4 months of age and weighing 69kg lwt, were purchased by a buyer in Bailup, WA.

NOTE: Prices as at 2pm, Friday 13^th May 2022