Market talk - Cattle catching lamb prices

A bit more rain in the north of the state is starting to show signs of a good early spring but I am hearing that there is much more needed from Epping south – although there are patches in the South East that have fared better than say the Derwent Valley. 

The good news is that livestock prices are relatively good with sheep and lambs the standout but cattle prices are also on an upward trend. 

Last week at Powranna agents yarded 1,167 cattle at the monthly store sale and although most of us expected an improved market, it was actually a very much better market with many cattle $200 to $300/head higher than the previous month and in some cases more. 

Heavy yearling steers (over 400kg) made $1,380 to $2,140, medium (330-400 kg) $1,040 to $1,700, light (200-330 kg) $800 to $1,540 and very small $780 to $990/head. 

There were a lot of well bred steers that made between 420c and 480c/kg and lighter over 500c in places. 

The top pen of heifers made $1,600 while medium weights $1,300 to $1,420, light $840 to $1,380 and very small $760 to $920/head with plenty making around 400c/kg and very small higher. 

There was a big crowd for the number of cattle and I think it would be fair to say that there are buyers who are starting to worry about missing out as supplies tighten going forward.

Brazil is the world’s largest beef producer and in recent times their cattle prices have risen sharply and have hit all time highs. This obviously affects the world trade and helps Australian exporters. Brazil is coming out of some big droughts which in turn has affected the national herd but as the destocking lessens the supply tightens.

MLA A. say that “Brazil’s improved weather conditions and subsequent price increases will likely constrain Brazilian beef production and exports”. Good news for Australian producers going forward.

Lambs prices continue to firm with more records broken throughout the Eastern States.

 Apart from the very top prices, all lamb prices continue on a very positive note with interstate averages sitting between 1,100c and 1,200c/kg carcass weight which compares with about 800c this time last year. 

There are forward contracts for delivery up till the middle of November at 1,030c/kg which would indicate that some exporters are concerned about supply of new season lambs right though till November.