Cattle prices hold despite quotas

ALTHOUGH  there has been some commentary around filling beef quotas to China and South Korea, cattle markets right up and down the East Coast have been resilient with prices holding at high levels.

Australian beef exports for June sat at 146,798 tonnes which is below the record set in May but still one of the best June results on record. 

It is 9 per cent higher than June last year and 50 per cent higher than the five year average. The best news out of these figures is that our industry is adjusting to fact that we filled the Chinese quota early and have found other markets for Australian beef. In June the US took 49,182 tonnes (our biggest customer) and that is 129  per cent above the running five-year average. Exports in June to China were 71 per cent less (7,814 tonnes) than June last year and 54 per cent below the five-year average. In June South Korea took 32,599 tonnes and Japan 24,012 tonnes to round out the top four with these top four taking 81 per cent of the total and the remaining 19  per cent spread across a variety of destinations.

The Chinese tariff level not only affects Australia, with Brazil about to fill their quota which leaves about 300,000 tonnes of Brazilian beef looking for a new home and that is on top of the 100,000 tonnes of Australian beef not going to China. Analysts suggest that much of the Brazilian beef will end up in Mexico and the US.

All this is positive and certainly was in cattle markets through out the week and locally at Powranna we saw a lot of yearlings make over 500c which we haven’t seen for some years. The best heavy cows topped at 410c and averaged 401c/kg liveweight.

While still on export numbers, to date this year the top five destinations for Australian lamb are the U.S. taking 35,728 tonnes, China 27,780 tonnes, South Korea 10,102 tonnes, Britain 8,965 tonnes and UAE 7,631 tonnes. These figures are impressive and that is on the back of the kill being 11 per cent less than last year. The interesting point here is whether these markets will continue to be as keen at the recent price levels between 1,100c to 1,200c and higher.

Time will tell.

Fewer cattle at Powranna

There was another small yarding of 80 trade and grown cattle at Powranna on Tuesday with over 50% being cows. 

The quality of trade cattle was good, and prices improved further on last week’s better sale. Yearling steers made 494c to 510c and heifers 450c to 508c with quite a number making over 500c which is at levels we haven’t seen for some years. 

The few grown steers and bullocks made 440c to 480c/kg.

There were 47 cows penned and the best heavy cows averaged 10c higher making 370c to 410c, leaner 355c to 372c and very lean 220c to 378c. Medium weight bulls made 350c to 360c/kg liveweight.

There was a larger number of 1,273 lambs (797 more) with many more store lambs included. All lambs sold to stronger competition with many averages $30 to $40 dearer. 

Heavy lambs made $286 to $330 and trade $246 to $304. Restockers were very strong and they paid $245 to $250 for trade, $200 to $232 for light trade, $142 to $212 for light and $118 to $125 for very light lambs.

There was a very small yarding of 252 mutton and this market was up to $40 dearer with heavy sheep making $260 to $330, medium $166 to $210 and light $118 to $132/head.