Key points:
- Grown steers hit record highs despite increased supply, with strong processor demand evident.
- NSW lamb yardings surge with new season lambs driving robust buyer demand.
- Mutton prices reflect subdued demand as processor prioritise lambs.
NSW feeder steer prices
Despite NSW feeder steer supply rising by 55% this week, its price by Thursday evening registered an increase of 23¢ or 4% to finish at 554¢/kg lwt. As mentioned in previous weekly wraps, NSW feedlot demand has continued to remain robust over the last month and its price and buyer performance will be an important dynamic to watch as the end of the year approaches.
Prices for feeder steers in NSW this week are operating at the 87th percentile level and are firm on year-ago levels, despite softer supply.
With tighter supply compared to 12 months ago, the current operating environment driving NSW producers to retain steers to add weight and improve margins during a very strong growing season is evident in the lower numbers yarded, despite a larger supply of steers available this year.
Cattle supply
Cattle yardings across the country softened 11% this week due to:
- transport and logistical issues
- wet weather
- favourable spring growing conditions
- producer confidence in the outlook of the market.
Compared to the corresponding week in 2021, national weekly yardings were lower by 26% or 10,560 head. Across the states:
- NSW yardings lifted 20% week-on-week but were 11% below the weekly average for 2022
- QLD numbers declined 23% week-on-week and are now softer by 14,000 head or 53% compared to the last selling week in September
- Victorian yardings continue to show resilience, with numbers slighter softer week-on-week but still above the weekly average for 2022 for the third week in a row
- SA recorded a strong uptick in supply, rising by 27% week-on-week
- WA yardings declined by 37% or 770 head as producer attention turns towards harvest.
Prices strengthen on tight supply
Spring grazing conditions affording producers marketing flexibility and wet weather inhibiting transport has tightened supply as a result aided the market to remain strong this week.
Most notably, processor purchased grown steers reached record highs at a national level this week, hitting $3,025/head. This price is 53% or $1,040/head higher than the five-year average. Victoria was the strongest performing state, with its price 12% or $361/head higher than the national average.
Lambs
Robust demand from processors saw prices across all key finished categories perform strongly. Evidently, the high quality of finished new season lambs is supporting strong buyer competition at the saleyards and lifting market performance accordingly.
The national heavy lamb indicator had a strong performance this week on the back of robust processor demand, rising 3% or 21¢ to finish at 784¢/kg cwt. SA heavy lambs are commanding a 5% or 36¢ premium to the national price and finished the week at 820¢/kg cwt.
Meanwhile, WA’s heavy lamb prices continue to lag behind the eastern states, with processor throughput and capacity issues as well as the large volume of new season lambs constraining price performance in the west.
Mutton prices continue to decline, falling 6% or 32¢ to finish the week at 479¢/kg cwt – the indicator’s lowest price since late August. With continued competition for kill floor space and processors prioritising more lucrative lamb opportunities, demand has reduced and this in turn has impacted price performance at the saleyards.
