Weekly Cattle Comments - 29.7.22

It was another tough week for the national cattle market, as the declining producer confidence and winter doldrums kept prices heading south for most categories. There was a total of 10,634 head offered through AuctionsPlus commercial cattle sales this week, down 14% on last week, with several reports of vendors staying out of the market and delaying sales until stronger conditions, or at least spring growth, returns.

The young steer category was largely cheaper again this week, except for the mid-weight 280-330kg lines, which kicked $114 higher, to average $1,744/head – with a clearance rate of 80% for the 1,105 head offered. Out of Charters Towers, North Queensland, a line of 128 Droughtmaster steers aged 12-15 months, weighing 282kg lwt, returned $1,270/head.

200-280kg steers slipped another $211 this week, to average $1,339/head, with the wide range of $620-1,800/head for the auction representative of the mixed quality offered. From the offering of 1,074 head, the clearance rate hit 76%. 330-400kg steers faired comparatively better, with the price average for the week only falling $53 on last week, to $1,794/head – with a 70% clearance rate for the 975 head offered.

Feeder steers remain in very tight supply, with the limited numbers adding volatility to the market average. From Tambo, Queensland, a line of 78 Santa Gertrudis feeder steers weighing 495kg lwt aged 12-18 months returned $2,280/head, heading to a buyer in Lavington, NSW.

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

It was slightly better news through the lightest heifer lines, with 200-280kg lifting $145 on last week, to average $1,497/head. The 1,128 head offered was matched with steady demand, seeing the clearance rate hit 85% at the conclusion of the sale. Heavier lines declined for the week, with 280-330kg lines back $165, at $1,586/head, while 330-400kg lines averaged $447 cheaper, at $1,637/head. A line of 38 Angus heifers aged 15-16 months, weighing 391kg lwt from Taminick, Victoria returned $1,920/head.

The stand-off in the PTIC heifer market continued this week, with the 1,573 head offered reaching a clearance rate of 21% at the immediate closure of the auction. Of those lines that sold, prices averaged $246/head higher, at $2,326/head, while PTIC cows jumped $140, to average $2,246/head.

From Tambar, NSW, a line of 42 PTIC Angus cows aged 5-6 years, weighing 568kg lwt, returned $2,960/head - selling for $800 above their reserve price. From Padthaway, SA, a line of 35 PTIC Angus/Shorthorn cows aged 7-years-old and weighing 588kg returned $2,360/head and will travel to Kaniva, Victoria. Out of Wellington, NSW, a line of 54 Angus heifers aged 18-22 months with CAF returned $3,800/head. The heifers weighed an average of 478kg lwt and will travel to a nearby buyer in Coolah, NSW.

However, for vendors and unsuccessful buyers during the live auctions, the market remains active throughout the following days. A review of last week’s results and clearance rates showed significant movements in four major categories in the days that followed the auctions – with similar expectations for this week. At the immediate closure of the auction on Friday 22^nd July, PTIC heifers averaged $2,080/head, with a clearance rate of 31%. Following successful post-auction negotiations, the average price lifted by $111/head, with the clearance rate reaching 44%. Similarly, 280-330kg steers clearance rates lifted from 50%, to 75.6%, as the average price lifted by $9/head. The lighter 200-280kg steer category jumped from 58%, to 82%, with the average price unchanged, at $1,550/head.

The search for light cattle wasn’t limited to the steer lines, with 280-330kg heifers lifting from 67%, to 80.7% in post-auction negotiations. However, in contrast to the steer lines, the average heifer price slipped $33/head, to $1,718/head.

NOTE: Prices as at 2pm, Friday 29^th July 2022