Key points:
- Weekly national cattle yardings are sitting 34% below the five-year weekly average.
- Restocker demand for cattle remains robust as supply tightens, supporting this week’s price performances.
- Unseasonably high sheep and lamb supply continues to place downward pressure on saleyard prices.
Cattle
Supply tightened across most cattle regions this week, driving demand that resulted in price rises across most categories.
Weekly yardings were 34% or 18,800 head below the weekly five-year average for 2022, with 33,747 head yarded. Notably, yearling steer volumes were 21% softer week-on-week. This lower supply drove both the national feeder steer and national restocker steer prices higher by 23¢ and 16¢/kg lwt week-on-week respectively.
Restocker demand remained robust in Queensland this week, with tighter supply and the impending spring boosting producer confidence to invest in cattle as a way of capitalising on the full moisture profiles and favourable growing conditions this spring will offer. These buying behaviours also indicate the herd rebuild remains front of mind for Queensland producers.
Meanwhile, strong demand from feedlot buyers saw the national feeder steer price reach its highest level since late June at 523¢/kg lwt. This shows the resilience of the sector and the continued global interest in Australian grainfed beef. To read the June quarter Lot feeding brief, click here.
Sheep
Restocking interest has not been isolated to the cattle market this week, with the national restocker lamb indicator lifting by 140¢ or 22% to reach 779¢/kg cwt. Outstanding sales were seen across most of the southwest slopes and the Riverina in NSW, with Bendigo also performing strongly.
Young lambs received a 66¢/kg cwt premium to the overall price, indicating producers are intent on securing younger stock in better condition to graze on pastures through spring.
The national trade lamb indicator improved by 20¢ this week to reach 745¢/kg cwt. Buyer demand for lambs with quality finish and weight are dictating price performance at the saleyards – and with temperatures and grazing conditions set to improve, producers have the opportunity to optimise lamb performance and ensure high quality finishes.
Slaughter
Cattle slaughter continues to trend downwards after consecutive weeks in early August where volumes sat above 100,000 head. In this first week of September, volumes have sat 8.3% lower than the corresponding week in 2021.
National lamb slaughter continued to sit above 400,000 head for the fourth consecutive week – the longest amount of time this has occurred since the drought. Overall lamb slaughter in year-to-date terms is firm on 2021 volumes but 8.2% or 102,000 head higher than 2020 year-to-date levels.
Co-products report
The next co-products market report is due to be released next week. Click here
